Student loan forgiveness was expected to cost 400 billion dollars. The option of having a potentially lower interest rate, longer term, and smaller monthly payment is tempting to many borrowers. Even a small portion of the 400B would benefit private student loan lenders tremendously, especially since these borrowers tend to be high earners with high FICO scores and substantially low default rates. It would add massively to the student loan lenders' bottom line with these borrowers cross-shopping other products in the lenders' platform.
Supreme Court decision:
Supreme Court strikes down Biden’s student loan relief plan
https://www.supremecourt.gov/opinions/22pdf/22-535_i3kn.pdf
Student loan payments are set to resume soon regardless of the SCOTUS ruling, and this ruling would decrease this monstrous addition to the national debt. It will also offload the huge cost to the working-class taxpayers.
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