Federal Student Loan Policy: Payment forbearance costs $5 billion a month, as the affluent benefit

Wall Street Journal:

The great stu­dent loan scam rolls on, mostly out of pub­lic sight. But oc­ca­sion­ally the ugly fis­cal facts ap­pear as they did this week at a Sen­ate Bank­ing hear­ing.

The Cares Act al­lowed stu­dent loan bor­row­ers to de­fer pay­ments with­out ac­cru­ing in­ter­est through last Sep­tember. Pres­i­dents Trump and Biden have both used emer­gency ex­ec­u­tive power to ex­tend the for­bear­ance. Now bor­row­ers don’t have to make pay­ments un­til at least Oc­to­ber, and mean­time their bal­ances won’t in­crease.