Forbearance

They just compounded over time the same way your interest on your credit card compounds.

Forbearance is a loan from the future, and the future charges interest.

And if you want to know what Washington thought of that playbook in hindsight, the agency that ran it was abolished in 1989.

The agency that replaced it was abolished in 2011.

The banks are now the landlord to the lender.

If you hear about weakness in private credit, you can expect that weakness to pass on to the banking system.

is a loan from the future, okay? The savings and loan turned 25 billion into 150 by weighting.

Borrowers in repayment, seventeen million recipients, 43% of the federally managed total, have at least one loan in repayment or delinquency, holding roughly six hundred fifty-eight billion.

Forbearance is shrinking.

Eight million recipients still have a loan in forbearance, down about 400K since March, four hundred fifty-nine billion in balances.

FSA expects that count to keep falling as SAVE Plan forbearance winds down.