Biden Plan Would Return Student Loan Borrowers in Default to Good Standing - WSJ

“Access to federal student aid can provide a pathway for additional education, which can help these borrowers compete in the job market and ultimately improve their ability to fully repay their loans, among other benefits,” said Richard Cordray, chief operating officer for Federal Student Aid, in a press release.

This is disingenuous. First, the best indicator of a borrower’s future ability to repay is their repayment history. That’s the theory that our entire financial system. So putting defaulted borrowers in a position to borrow more and dig a deeper hole is harmful to the borrower. Second, Cordray knows that the Dept. of Education is going to do everything in its power to make sure that most borrowers don’t have to fully repay their loans.