By Andre Perry/The Hechinger Report
Soaring unemployment and underemployment, a result of the coronavirus pandemic, are forcing college borrowers to defer loan payments to make room for things like food and rent.
Back in March, student loan borrowers received a reprieve with the passage of the Coronavirus Aid, Relief, and Economic Security Act, which included provisions that suspended loan payments.
But those provisions are set to expire next month.
The effects of the pandemic on economic activity will last well beyond the end of the social distancing, as my Brookings colleagues have pointed out. Many economists predict a long, drawn out recovery, spanning years. Even if borrowers defer their loans for an extended period of time, the albatross of debt, which weighs heavier for borrowers of color, will continue to be a drag on the overall economy.
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Posted on August 10, 2020