Biden administration extends pause on student loan payments

WASHINGTON – President Biden, citing the pandemic, said on Wednesday his administration extended the moratorium on student loan repaymen...


WASHINGTON – President Biden, citing the pandemic, said on Wednesday his administration extended the moratorium on student loan repayments by 90 days, continuing a relief measure that began nearly two years ago under the administration Trump.

“While our employment recovery is one of the strongest ever – with almost 6 million jobs added this year,” Biden said in a statement, “we know millions of student loan borrowers still face the impacts of the pandemic and still need some time before resuming payments.

The extension concerns around 41 million borrowers, including nearly 27 million who have not paid their monthly bill since early 2020.

From his early days in office, Mr Biden has come under pressure from Democratic lawmakers urging him to keep his promises. a campaign promise to erase $ 10,000 per person with federal student loan debt. Mr Biden has so far resisted the move and other more ambitious calls from lawmakers, including New York Democrat and Majority Leader Sen. Chuck Schumer, who has called on the president to forgive up to $ 50,000 through executive action.

The break froze accrued interest on tens of millions of loans. And about 7.2 million defaulting borrowers have been suspended collections.

The so-called administrative tolerance was initially put in place as part of the CARES Act in March 2020, and was later extended by then-President Donald J. Trump. When Mr. Biden took office in January, he pushed the date back to September 30 and then in August he pushed it back. “” one last time»On January 31.

Even so, the kind of sweeping forgiveness that many progressives and activists have asked for has remained elusive. In recent months, their calls have gone unanswered from Mr Biden, who said he was reluctant to explore executive action to write off large amounts of student loan debt for fear that the relief does benefit people attending elite colleges. But this week, Kamala Harris, the vice president, spoke publicly about the need to provide relief to borrowers.

“I had student loans,” Ms. Harris said in an interview with radio host Charlamagne tha God. “I mean, listen, right now we have so many people, tens of millions of people in the United States who are grappling with debt and student loan responsibilities, and it’s preventing them from having a family. or buy a house, and it’s real, and we have to face it.

White House press secretary Jen Psaki said on Wednesday that conversations with advisers, including Ms Harris, led to Mr Biden’s decision to extend the moratorium. Ms Psaki said the president’s threatened social spending plan was not the main reason for extending the student loan.

“This is something the president has given a lot of thought to over the past few days,” said Ms Psaki, adding that conversations with Ms Harris “led to the decision to extend until May.”

Activists hailed the administration’s decision.

“The Biden administration has thrown a lifeline for student loan borrowers in the face of economic and public health reality,” said Mike Pierce, executive director of the Student Borrower Protection Center. “It was a necessary action to keep borrowers afloat.



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Newsrust - US Top News: Biden administration extends pause on student loan payments
Biden administration extends pause on student loan payments
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