New rules make it easier for struggling student loan borrowers to access PPP loans
Annie Nova
February 23, 2021
KEY POINTS
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The Biden administration is opening the Paycheck Protection Program to student loan borrowers who’ve fallen behind on their payments.
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Previously, a delinquency or default on an applicant’s record could disqualify them for the government-subsidized loans.
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Around a third of federal student loan borrowers are in delinquency or default.
Struggling student loan borrowers who own a business received some welcome news this week: They will no longer be excluded from the Paycheck Protection Program.
Any business owned 20% or more by a borrower who had fallen behind on their payments previously could be determined ineligible for the government-subsidized loans. The funds are aimed at keeping small businesses afloat during the upsets of the Covid pandemic and can later be forgiven.
