Student Loans, COVID-19 and Reform Needs

Source: Martin Wurm, Regional Financial Review, November 2020
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Despite concerns that student loan delinquencies and defaults may spike once deferment under the CARES Act expires at the end of 2020, most student loan debt is owned by high-income households, which are not likely to default and do not need such subsidies. Policy reform should be aimed to benefit lower-income and minority households, which are targeted by low-quality, for-profit schools and are much more likely to default