Big Bite: A Timeline | Student Loan Debt Forgiveness
Big bite | A detailed dive into big news
On March 30, 2010, Obama signed the Healthcare and Education Reconciliation Act of 2010.
The act overhauled the student lending program, ending the program that subsidizes banks and other federal institutions for issuing loans. Instead of federalizing the student loan program and allowing students to borrow directly from the federal government.
Before Obama entered office, student loans did not qualify for almost every standard consumer protection (like bankruptcy and statute limitations); student loans had caused a hyper-inflationary market and a systemically predatory lending system.
Obama's administration did nothing to curb the predatory collection of the student lending system and still did not allow for bankruptcy.
Although the 2010 legislation provided forgiveness after 20 years, if borrowers keep up with their income-driven repayments over time, history brings into question the effectiveness of this policy. The National Consumer Law Center reported in March 2021 that only 32 borro…
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