Millions Not Paying Student Loans in Hopes of Forgiveness

Millions are not paying their student loans in hopes that the Education Department will end up forgiving their debt, according to a new Credit Karma report.
The Qualtrics/Intuit Credit Karma report found 20 percent of borrowers hadn’t made any payments on their loans. The percentage was even higher, at 27 percent, for borrowers who made less than $50,000 a year. And more than one-third, 36 percent, said they aren’t making consistent payments in hopes the debt will be fully forgiven.
President Joe Biden’s administration has forgiven debt for millions of Americans through different programs. Public service workers got their loans cleared through the Public Service Loan Forgiveness program, and millions of others saw their debt erased with income-driven repayment plans like SAVE.
President Joe Biden speaks during an event at the South Court Auditorium at the Eisenhower Executive Building of the White House on September 3 in Washington, D.C. Biden has passed student loan forgiveness for millions… President Joe Biden speaks during an event at the South Court Auditorium at the Eisenhower Executive Building of the White House on September 3 in Washington, D.C. Biden has passed student loan forgiveness for millions of Americans, but millions are not paying in hopes that the Education Department will end up forgiving their debt. More Alex Wong/Getty Images
While about 43 million Americans have federal student loan debt, Biden’s Education Department has forgiven roughly $25 billion in student loans for 1.3 million borrowers.
While Republican states have filed a lawsuit blocking the SAVE plan until a federal appeals court ruling decides the matter, many Americans are still holding out hope that their loans could be fully forgiven.