Student Loan Debt Reaches Nearly $200 Billion Amid Forbearance

The Wall Street Journal reports that the federal student loan moratorium has impacted around 37 million borrowers by accumulating roughly $195 billion in student loan debt. According to a report released on March 22 by the Federal Reserve Bank of New York, a rise in delinquencies is expected once the freeze is lifted and payments resume May 1. This comes as the Biden administration is under pressure to deal with the roughly $1.6 trillion federal student-loan portfolio. Many congressional Democrats are urging the administration to extend forbearance beyond May 1 which would be the fourth extension under President Biden.

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