Currently, the courts have issued orders blocking ED's one-time federal student loan debt relief program. As a result, ED has stopped accepting applications as they seek to overturn those orders. Applications from student loan borrowers who have already applied are on hold. Given the uncertainty of the relief plan, companies may be wondering how it could impact their workforce. Especially, as companies are considering Student Loan Repayment Assistance (SLRA) as an employee benefit for 2023. To put it in perspective, let's look at information released by the Congressional Budget Office (CBO).
$1.6 trillion is the current balance of all federal student loan debt.
37 million borrowers have Direct loans.
- 95% of borrowers meet the income criteria for debt relief.
- 65% of income-eligible borrowers have received at least one Pell grant.
- 90% of income-eligible borrowers would likely apply for debt cancellation, and 45% of them could have their entire outstanding debt cancelled.
- $430 billion is the estimated amount of debt that would be cancelled.
$1.27 trillion would be the remaining balance of federal student loans after the debt relief plan.
This shows there will still be plenty of people with student loan debt who may need support, especially in challenging economic times. Attigo is ready to help support student loan borrowers through an SLRA program, personalized counseling, financial wellness and more. Contact us to learn more.