Biden Admin Extends Student Loan Repayment Pause Until May 1, 2022
Do you agree with Biden’s latest extension of the student loan repayment pause?
What’s the story?
- The Biden administration announced Wednesday that it is extending the pause on federally-held student loan payments for an additional 90 days through May 1, 2022.
- This extension is a reversal of the Biden administration’s previous assertion that the previous extension of the repayment pause through January 31, 2022, would be the last extension of the pause.
- The pause initially began in the spring of 2020 pursuant to the bipartisan CARES Act. Then it was extended on two occasions by the Trump administration before President Joe Biden extended it through September 2021 shortly after taking office, then he extended it in August through January 2022.
- 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.
- Biden explained his latest extension of the student loan repayment pause in a statement which read in part:
“Now, while our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — we know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments.”
- Rep. Jim Banks (R-IN), chairman of the conservative Republican Study Committee which has 158 members in the House GOP, questioned Biden’s reasoning for the latest extension in a tweet:
“So has the Biden administration built the greatest economy in 50 years or are we still in an economic turmoil that requires a pause on student loans? Can’t have it both ways, Joe.”
- Rep. Pramila Jayapal (D-WA), chair of the Congressional Progressive Caucus which has 95 members among House Democrats, released a statement that praised Biden’s “excellent and necessary decision” to extend the pause and added he should go even further by canceling student loan debt:
“But the work cannot stop here. The administration must now deliver on the President’s promise to cancel student debt, lowering costs for families at a critical time of tremendous health and economic uncertainty.”
- Sen. Tom Cotton (R-AR) tweeted that Democrats’ repeated extensions of the student loan repayment pause are unfair to Americans who repaid their loans or didn’t take out federal student loans to pay for college but will ultimately pay the bill:
“There’s no free lunch. Not requiring student loan repayment means the majority of Americans who paid their debt or never took loans will get stuck with a trillion-dollar tab.”
— Eric Revell
(Photo Credit: iStock.com / Kameleon007)
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I agree with this statement: that Democrats’ repeated extensions of the student loan repayment pause are unfair to Americans who repaid their loans or didn’t take out federal student loans to pay for college but will ultimately pay the bill: “There’s no free lunch. Not requiring student loan repayment means the majority of Americans who paid their debt or never took loans will get stuck with a trillion-dollar tab.” Why should those who did not go to college and are working and making their incomes be saddled with the debt of citizens who chose to go farther in debt than they can afford?
I agree that student loans should be suspended. However, my primary concern is the cost in this country for higher education is ridiculous. It makes absolutely no sense that a young person should pay 30k a year tuition. There has to be better options as there are in other countries where tuition is substantially less. Also, the US government should get creative enough to forgive loans if a person guarantees a certain amount of time.
I've said this before, but I had student loans. I repaid them. Everyone who took out student loans knew what they were getting into. The economy is the best it has been in years. (Sorry Donald Trump) Pay back your loans.
This extension is suppose to help students? No mention if interest continues to accrue while suspended. We could go the truly insane way of AOC and forgive their debt; they are smart enough to be college students, but not to know what debt means. How about giving the business that have been forced to shut down because of this administrations lack of intelligence & 'help'. These business were -not willfully blind.
Do you agree with Biden’s latest extension of the student loan repayment pause? Rather than postpone, they should all be forgiven. Here's the deal: many millions of borrowers have actually repaid the loan. Now they are paying the interest. Predatory lending ring a bell? We need to make college free and now that we've allowed these "lenders" to earn their millions on the backs of young Americans, let them get real jobs contributing to the economy in a meaningful way, instead of sucking young people dry to line their own nests. There is no reason college costs 4-5-6 times what it did when we were young. It is not all right.
The debt does not go away, terms of the loan still require payment. The House and Senate have not funded this where is he creating the spending authority?
Write off student debt. Wish mine was, but these poor kids will never get out from under.
Can’t continue forever..
Why not after the rich got huge tax cuts
And a very Merry Christmas to you Glo, jimK, Frank-001, The Dark Side, Kathleen, larubia, burrkitty, verymary, and the many others who I have come to admire for their intelligence and the knowledge of what is actually going on rather than the doofus's who recite Faux Noise talking points instead of exercising critical thinking skills. You all give me hope for a brighter future instead of a fascist society run by Donnie Doofus.
Frank-001 has it down for the student loan situation. Well researched and worth reading. College is nothing like when I went a century ago. I enlisted at 17 at the tail end of Vietnam and got the GI Bill as a result. I also lived in Minnesota and college was heavily subsidized by the state which kept tuition rates low. I worked a part-time job and a full-time job and went to school full-time for 6 years. I also took out a modest amount of student loans so I could live beyond my means; i.e., always drove a new car, motorcycle, etc. I lived with room mates and kept my debt low and utilized Pell Grants and my GI Bill. I know some married couples who are getting their doctorate in Physical Therapy. Between the two of them they owe over a hundred seventy thousand dollars. Hell; that's a mortgage payment. Even though they will command good salaries they will be prevented from home ownership, will probably delay having children and will be paying back student loans till the end of time. Just the compounding interest will eat into paying off the principle for decades to come. My graduate school was paid for by an employer so I didn't have to worry about that. Austerity measures by many states have left colleges poorly subsidized which is penny wise and pound foolish. If you make more money you pay more into FICA and also taxes. I commanded a six figure salary and paid my fair share of taxes which benefits all when it is expended on the working class rather than shoveling our money upwards. People having children has dropped to the lowest level since the Great Depression. We already have a Social Security crisis looming with the trust set to be expended by 2035. If we keep wages low the rich get richer. If we subsidize college and pay for childcare we have both couples working and hopefully earning more if they can afford college or a decent trade school for plumbing, heating, electrical, building trades, welding, etc. We need to begin investing in our infrastructure and our people as we all benefit by it in the long run. Pass the Build Back Better plan.
i'm so proud of the Biden administration on there leadership
Well done, Bicycler - as usual! 😊❤️😊❤️. A very merry Christmas to you and your family, my friend.
If Uncle Joe wants to give the economy a shot in the arm, he needs to just forgive all student loan debt.
Neither agree or disagree. It is extremely vital that we teach financial education starting in elementary schools. People need to have a better understanding of loans, interest, and principal. We need to understand what a budget is and how to use it. We need to learn how to live with in our means. We also need to change student loan and offer alternative payments. We also need to change college. Online college is a great start. We also need to stop the lie that pursuing a college education will give you a mansion or an expensive car that you really do not need. We need to change the dream. The dream is specific to you. Everyone does not a house or car or 2.5 children. Some of us like to rent because we can easily move around. Some of us are looking to save more for retirement so we can travel. Values are different for everyone and we need to top pushing the same value on everyone. We also need to bring back apprenticeship. Learn on the job is the best. We all realistically learn on the job.
I remember working through college to pay for what my scholarships didn't cover. And going to a state school because it was much, much less expensive instead of an ivy league or Caltech or MIT. I wasn't interested in those not because I couldn't get in, but because it would mean massive student loans for years after I graduated. I was able to figure this all out and make smart choices before I went to college. And now I get to cover the payments for others dreams who chose poorly. This is Biden buying votes with taxpayer money. It isn't a noble or altruistic decision to help those poor college students. How about for the next 2 years we cancel all federal income taxes on households that makes less than 100,000 per year taxable income? That would actually help the economy and a hundred million or so families. But the US government would go broke from continued dumbass spending and vote-buying handouts like this. WTF are we doing by allowing this to continue? With moves like this Biden is making Trump look like he was a mental giant. That should be impossible. And the band plays on. The band being anyone who thinks this is a beneficial move for our country.
Nothing is free but the President is continuing to push for education to eventually be free. Let's stop this stepping stone on a path of tearing our systems apart.
I think those that are employed can pay for their education bill that they personally took out. Those that are unemployed are getting unemployment benefits and if not then they have been on unemployment too long and used all their benefits. I went down to the Walmart store across our small town and saw no less than 5 HELP WANTED SIGNS some even had full time jobs starting at $14 per hour. That was at McDonalds. So get out of your parents basement and go get a job. Once you get this Meager job you can spend your evenings in the basement working on your resume and sending them off looking for that career job you thought you were going to get with that expensive college education you got, majoring in basket weaving I and II, or underwater brain surgery.
The reason I am against this is because I believe education should not be a financial enterprise
Agreed. The student loan program is a classic example of a good program having unintended consequences. … …. Students, with little experience managing debt or assuming great debt were exploited by lenders whose loan’s principal was guaranteed by the government and by educational institutions who were able to rapidly raise tuitions. There was no career counseling or hesitation from lenders because they were assuming little risk. … … … Students were led to believe that a college education will result in an economically comfortable future. That is true for many fields of study but not all. People studying other areas that they have a passion for, and truly want to understand can certainly benefit from their education - but they have to realize that their passion for that education many not find employers willing to hire them. If lenders had to risk anything more than finance charges, they would have had these discussions. … … … Universities also had access to a new source of funding to upgrade facilities and pay their staff - and they used it. … … … The Congress needs to do a better job monitoring it’s programs to make sure that they are functioning as intended. Congressional intervention could and should have prevented students ‘trapped’ in four year programs to have to pay rapidly increasing tuitions. … … … A little delay in repaying that debt can help the many trapped in this viscous whirl wind of escalating debt - that many students get sucked into - having already investing a large debt to get through the first two years few will just leave their program because the their debt burden will significantly increase with large annual tuition increases.