These Private Student Loan Companies Got PPP Loans — Will They Be Forgiven, While Borrowers Struggle?

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These private student loan companies got PPP loans—will they be forgiven, while borrowers struggle?

hundreds of thousands of dollars from the Paycheck Protection Program . The PPP program was enacted by the CARES Act last year to provide economic relief to struggling businesses in the form of forgivable loans to cover payroll and other selected operating expenses.Term Asset-Backed Securities Loan Facility

, a lending program established in response to the pandemic to keep credit markets afloat. Under TALF, the federal government provides financing to support the purchase of “asset-backed securities,” which are bundled pools of loans and other consumer debts, including private student loans.

The SBPC estimated that private student loan companies may have received up to $300 million in pandemic-related economic relief. The authors of the report noted the irony of providing hundreds of millions of dollars in financial relief and forgivable loans to private student loan companies, while private student loan borrowers continue to struggle.

 

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