Biden Admin Extends Student Loan Repayment Pause Thru January 2022
Do you agree with Biden’s extension of the student loan payment pause?
What’s the story?
- The Biden administration announced Friday that it is extending the pause on federally-held student loan payments through January 31, 2022, for the final time. The pause initially began in the spring of 2020 pursuant to the bipartisan CARES Act, was extended on two occasions by the Trump administration, and President Joe Biden extended through September 2021 shortly after taking office.
- While pause is in effect, the federally-held student loans do not accrue interest, payments aren’t required (although borrowers may continue to make payments against their principal balance), and collections of defaulted student loans are also paused. Borrowers with federally-held student loans do not need to request the pause from their servicer, as it takes effect automatically, although they can contact their loan servicer with questions.
- In a statement, Biden called the pause “a critical lifeline” that enables borrowers to not “have to choose between paying for basic necessities or their student loan during the pandemic that upended their lives” and added:
“That’s why today, my administration is extending the pause of federal student loan repayments one final time until January 31, 2022. This will give the Department of Education and borrowers more time and more certainty as they prepare to restart student loan repayments.”
- Senate Majority Leader Chuck Schumer (D-NY) was joined by Sen. Elizabeth Warren (D-MA) and Rep. Ayanna Pressley (D-MA) in releasing a statement saying they’re “pleased” with the extension but it that “it doesn’t go far enough” and calling for Biden to cancel $50,000 of student loan debt for individual borrowers:
“We continue to call on the administration to use its existing executive authority to cancel $50,000 of student debt. Student debt cancellation is one of the most significant actions that President Biden can take right now to build a more just economy and address racial inequity.”
- House Education and Labor Committee Ranking Member Virginia Foxx (R-NC) released a statement criticizing the Biden administration’s latest extension as “needless” and added:
“This extension does a grave disservice to borrowers across the country, and our children will pay the ultimate price for this irresponsible delay. Secretary Cardona is using the permanent pandemic narrative to wield power rather than enact responsible solutions to help borrowers get back on track. I regret that Secretary Cardona did not show real leadership by working with Congress to transition responsibly the portfolio back into repayment by Oct 1 of this year. It is nothing less than a dereliction of duty.”
— Eric Revell
(Photo Credit: iStock.com / Kameleon007)
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Support Americans in economic relief!
Extension yes but repayment of loans later. Student loans and parent loans interest rates must be regulated so a fixed rate is known prior to taking it out.
These kids are stupid enough to spend hundreds of thousands of dollars for a $30000.00 job. They deserve to be in debt for the rest of their lives.
What ever happened to the campaign promise of student loan forgiveness. Oh wait just another Biden campaign lie.
College should be easily attainable in this country. You shouldn’t have to go into enormous debt to get an education. An education is an asset for the country. Also Everyone should be mentored an employable skill of choice. Then they could decide to become a master of their skill or choose more education for white collar jobs. It should be a priority of government to help in training and education for the sake of a prosperous society and a healthy democracy. The Republicans are obviously against this and should be voted out of office.
Student debt forgiveness is one of the best most impactful ways to help Americans struggling to make their way through the last two decades of uncertainty and economic turmoil. Pausing payments helps a little but forgiveness would help a lot.
This is a bandaid on a pending crisis. Biden needs to forgive at least part of student loan debt to prevent disastrous economic consequences.
The Federal bankruptcy laws need to be changed back to allow student loan debt to be discharged through personal bankruptcy. This is the absolute minimum Congress should do during this term to help those who have impossible-to-pay student debt. This legislation should be passed outside of the human infrastructure, reconciliation bill.
It is atrocious that Universities and colleges are costing so much. Young people can not manage to put themselves through University, like I did in the 60's at UCLA. Why are Universities costing so much? Wonder if it is because they have too many administrators.
I paid all my student loans off but that was at a time when the banks were all normal and had lower interest rates. I think that the banks were being pushed by those Koch brothers to keep raising their interest rates so more and more lower income and people of color would not be able ever to go to college. Just my opinion.
All student loans should be permanently canceled. Education should be a public right nor a profit center.
Repayment is an obligation. It's a responsibility. We can't be a responsible Nation if we are not comprised of responsible people. Extension of repayments is dragging our feet towards outright forgiveness, and even worse outcome. Consider the rights of and fairness toward those that are making their payments and have completed their payments. And then of course, there are the rights of the taxpayers that are impacted by extensions and forgiveness.
We should eliminate the student debt burden & boost the economy.
People have been making more money on unemployment than working.. this and the rent/mortgage moratorium while people are making more money is actual proof that it’s not a financial issue but a responsibility issue
I am actually for relaying student loans but the interest is WAAAAAY TO HIGH. (average 6-8.7%) . My government making more money on me while raising taxes? NOPE!
Next they need to cancel those students loans. The banks have preyed to long on middle and low income students
The only student loan legislation I will fully accept is cancellation. For too long life crippling debt has been over the lower, and some middle, classes. Eliminate this burden and actually let people enjoy some breathing room.
We need to get people back to work. If you're worried about the virus get vaccinated and get back to life.
Biden is desperately trying to find a way to make this just another permanent wealth transfer. He’s just stalling for time.