- Decreases the potential escalation of the national debt.
- Less burden to the working-class taxpayers.
- Controls inflation as both the student loan moratorium and loan forgiveness would increase spending power and cause further inflation.
- Less likely for the Fed to raise the tax rate and the amount of hike since inflation would be more under control without the loan forgiveness and loan pause.
- Gives the possible recession a softer landing.
- The Department is instituting a 12-month “on-ramp” period from October 1, 2023, to September 30, 2024. The monthly payments missed during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies. However, the payments will still be due and interest will still accrue during the 12 months, but the interest will not capitalize at the end of this “on-ramp” period.
- Biden's usage of the Higher Education Act (HEA). The HEA will be a long tedious process that requires multiple layers of approval which is the reason they used the HEROES Act in the first place.
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