President Joe Biden is considering forgiving $10,000 in student loans per borrower, but eliminating interest on the debt could be a more effective way to reduce the financial burden, according to experts.
The impact of 0% interest has been apparent amid the pandemic freeze on student loan repayments, which is scheduled to end on Aug. 31. With interest eliminated, borrowers saved $37.8 billion through the end of the last year. And in the first quarter of 2022, the total national student loan debt increased just 1.95%, the lowest rate in at least two decades, according to the Education Data Initiative.
