Student Debt - a podcast by WHRO Public Media

I’m Jeff Tanner, and this is a Strome Business Minute. Student loans have been put on hold for another 90 days by executive order. The CARES Act had originally included a provision suspending payments for 6 months, or through the end of September. Trump’s order suspends payments until the beginning of 2021. Interest will not accrue during the period. The COVID crisis isn’t the first time student debt has been suspended. Other times included natural disasters such as Hurricanes Harvey, Irma and Maria and the California wildfires. But did it help? In the three quarters following the suspension period, defaults and delinquencies increased significantly. Clearly, the economic conditions caused by those disasters were harder for some borrowers to overcome. For others, the pause simply delayed the inevitable. What we don’t know is how many avoided delinquency because of federal suspension. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.

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