With President Biden’s student loan forgiveness at an indefinite pause, the federal government is looking for other ways to help student loan borrowers receive relief from their debt. However, many of these changes hinge on the decision of the executive branch.
One reason student loan debt is so difficult to pay down has to do with the interest charged on the balance every month. According to the Education Department, $22 billion in interest was charged in the fiscal year 2019 alone. Keep in mind that no interest has been charged on federal student loans since the pause was issued on interest on these types of loans after the start of the COVID-19 pandemic.
