When Student Loan Debt Paused, These Borrowers Kept Paying - WSJ

As of December 2021, 1.2% of borrowers continued paying down loans, said Mark Kantrowitz, a student loan expert.

Everyone is sitting around waiting for “forgiveness,” when they just whiffed the biggest loan arbitrage in a generation.

Student loan interest is calculated on outstanding principal, not the total balance. But you can’t pay down any principal until all outstanding interest in paid.

29 months, given all of the government stimulus and the job market, was more than enough time for the “average” borrower to pay off their loans, more so for the well paid borrower.

How is it that only 1.2% of borrowers saw this “pause” for what it really was? This was best chance to honor their word, swiftly pay off loans, and move on with the rest of their lives.

But instead, they, you know bought a car or a house or some GameStop stock.

How do you feel about paying off their loans for them now? They had their shot and they chose not to take it. Why should the taxpayer bail them out any more than they already have?