Politics aren’t the only reason Retro Boys Toddlers Kid Funny Mr Steal Your Pie Thanksgiving T-Shirt B0BN1MNJTB .To forgive debt, borrower advocates believe. It would also be a chance to fix longstanding problems. The Education Department is functionally the country’s largest consumer bank, holding more in loans than Americans owe on any consumer debt other than mortgages. But its outside loan servicers have for years drawn scathing criticism from government auditors and watchdogs, with even basic functions sometimes breaking down. Some problems are being addressed. The Biden administration has wiped out $17 billion in debt for 725,000 borrowers by expanding and streamlining forgiveness programs for public servants and those who were defrauded by their schools, among others. Last week, it offered millions of borrowers added credit toward forgiveness because of previous payment-counting problems. But there’s much still to do. The Education Department was deluged by applicants after it expanded eligibility for millions of public servants. And settlement talks in a class-action suit by nearly 200,000 borrowers who say they were defrauded by their schools recently broke down, setting up a trial this summer.
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Even the logistics of collecting payments have grown more complicated Retro Boys Toddlers Kid Funny Mr Steal Your Pie Thanksgiving T-Shirt B0BN1MNJTB . Two big loan servicers quit last year, forcing the Education Department to shift millions of borrowers to new vendors — a process that is likely to take the rest of the year. The six remaining servicers got another curveball from the Biden administration this month: Seven million people who have defaulted on their loans — nearly one in five of all federal debtors — will be restored to good standing. Canceling debt could make addressing all this easier, advocates say. Forgiving $10,000 per borrower would wipe out the debts of 10 million or more people, according to different analyses, which would free up resources to deal with structural flaws, proponents argue. “We’ve known for years that the system is broken,” said Sarah Sattelmeyer, a higher-education project director at New America, a think tank. “Having an opportunity, during this timeout, to start fixing some of those major issues feels like a place where the Education Department should be focusing its attention.” Voters like Ashleigh A. Mosley will be watching. Ms. Mosley, 21, a political science major at Albany State University in Georgia, said she had been swayed to vote for Mr. Biden because of his support for debt cancellation. Ms. Mosley, who also attended Alabama A&M University, has already borrowed $52,000 and expects her balance to grow to $100,000 by the time she graduates. The debt already hangs over her head.
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