Biden administration extends freeze on federal student loan repayments through August 2022
Worried about your federal student loan repayment? Well, you can breathe easy today – and for the next four months. On Wednesday, President Joe Biden announced his administration’s decision to extend loan repayments. The President shared a short clip with the public through his verified social channels.
“I am announcing today that my administration is extending the federal student loan repayment moratorium through August 31, 2022,” said President Biden. “I know people have been hit hard by this pandemic, and although we’ve come a long way over the past year, we’re still recovering from the economic crisis it caused.”
Based on CNN, the pause expires on May 1. Most federal student loan borrowers haven’t had to worry about withdrawals for the past two years. The freeze, which prevents interest from accruing and collections, has been in place since March 2020.
This is the third time Biden has extended the payment restart date. The Biden administration previously said the extension from September 2021 to January 2022 would be the last extension. However, the increase in COVID-19 cases warrants an extension to May 1.
“Continuing this pause will help Americans breathe a little easier as we recover and rebuild from the pandemic,” President Biden said Wednesday.
Just cancel ‘Em Joe
And while some are relieved with the extension, others are calling on Biden to cancel the debt altogether. Ironically, just hours before Biden’s extension announcement, U.S. Senator Bernie Sanders, as he was before, supported the repeal. He tweeted, “cancel student debt,” and went on with “all of that.”
Although Biden’s presidential campaign has voiced support for the repeal, the president has urged Congress to make the decision instead of using its executive powers. However, there is some progress on the subject. President Biden expanded forgiveness programs to Americans with severe disabilities, public sector employees and borrowers defrauded by for-profit colleges.
According to the Federal Reserve, Americans owe more on student loans than they do on credit cards or car loans. In fact, recent data shows that Americans are losing $1.8 trillion when it comes to student loans — a number that has been increasing since 2006. CNN, about 43 million people have student debt, which means that nearly 17 percent of American adults owe some money to education.