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Political and Legislative

The White House Faces Backlash Over Decision to Restart Student Loan Interest

The White House is facing backlash about its decision to reactivate interest for student loans as part of its “on-ramp” repayment program, which progressives and advocates argue isn’t enough to help struggling borrowers.

The program aims to help those who can’t repay their loans when payments resume this fall by removing the threat of default or harm to credit ratings for 12 months if bills aren’t paid. It’s one of the only routes the Biden administration argues it could have taken since ending the payment pause that ultimately became part of the debt limit deal President Biden struck with Speaker Kevin McCarthy (R-Calif.).

The so-called “Plan B” for providing student loan relief was laid out late last week hours after the Supreme Court struck down a program the White House attempted to implement that would have forgiven up to $20,000 in student loans dependent upon earnings. The alternative route aims to help borrowers make their journey to repayments easier.

Read more at The Hill.

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