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Who Pays For Debt Foregiveness

Started by Ecbuck, April 19, 2022, 03:04:50 pm

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Ecbuck

Are the current debt forgiveness programs restricted to debt held by the US government or does it apply to private lenders as well?  If it applies to private lenders, how can they be forced to forgive and is the government writing them a check to cover?  If the government forgives, where is that money coming from or is it just adding to our Federal debt?

TheCollegeInvestor

Are the current debt forgiveness programs restricted to debt held by the US government or does it apply to private lenders as well?

Only debt held by the U.S. Government. There are no loan forgiveness programs for private loans (but there may be student loan repayment assistance programs offered by states or companies that could be applied towards private loans).

If it applies to private lenders, how can they be forced to forgive and is the government writing them a check to cover?  They cannot.

If the government forgives, where is that money coming from or is it just adding to our Federal debt?
It would be adding to our Federal debt. It's simply shifting the liabilty from individual Americans to the Federal govenment.