New rules make it easier for struggling student loan borrowers to access PPP loans

CNBC

Annie Nova

February 23, 2021

KEY POINTS

• The Biden administration is opening the Paycheck Protection Program to student loan borrowers who’ve fallen behind on their payments.

• Previously, a delinquency or default on an applicant’s record could disqualify them for the government-subsidized loans.

• 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.

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