With US student loan payments pause set to end, debtors seek cancellation

theguardian.com:

Farzad Kapadia has been paying off his $130,000 in student loans since 2012.

During the pandemic, a pause on federal student loan payments set in March 2020 temporarily lifted the burden for Kapadia, 40, though he continued to make payments on smaller loans with private lenders.

“I can’t describe the amount of relief it’s given me. It’s been life-changing,” Kapadia said. “Prior to the moratorium, I would burn through every single check, I’d have nothing left at the end of the month. I’d be going into credit card debt.”

The pause is scheduled to expire on 1 May after two years in place, and Kapadia – who is one of nearly 45 million Americans with student debt – said that he was “terrified” at the idea of payments getting started again, especially since inflation has meant his cost of living has gone up. Over the last decade, Kapadia has managed to pay off most of his principal loan amount, $80,000, but is still working to pay off the $50,000 of interest his loan has accrued.

“Having a huge chunk taken out immediately and put towards interest payment, despite having paid back the full principal balance, I just find that to be usury and cruel, really,” Kapadia said.

Kapadia is joining hundreds of borrowers who are heading to Washington DC on 4 Aprilto protest against student debt and advocate for Joe Biden’s cancellation of student loans. Among the 60-plus organizations taking part are MoveOn, the Working Families party, NextGen America and the Hip Hop Caucus.

Activists say the expiration of the loan pause and the economy’s high rate of inflation mean there is even more urgency to address the student debt crisis.

The Debt Collective, a union of borrowers, is organizing the rally and said protesters from across the country will be