Biden Administration Not Extending Student Loan Relief and Progressives Are Not Happy
The Biden administration has announced that the extension on student loan payments is coming to an end. Loan payments are going to come due again starting on February 1st of 2022.
This is a pet issue for progressive Democrats and they are not happy about the decision.
Zack Friedman reports at Forbes:
Biden Won’t Extend Student Loan Relief And Confirms Student Loan Payments Restart February 1The Biden administration won’t extend student loan relief and confirmed student loan payments restart February 1, 2022.Here’s what you need to know.Student LoansWhite House Press Secretary Jen Psaki confirmed to reporters during a press briefing that the Biden administration won’t extend student loan relief — and the student loan payment pause will end January 31, 2022. (No, Biden won’t extend student loan relief again). Here are some highlights from her comments:
- “In the coming weeks, we will release more details about our plans”
- “We will engage directly with federal student loan borrowers to ensure they have the resources they need and are in the appropriate repayment plan.”
- “We are still assessing the impact of the Omicron variant.”
- “A smooth transition back into repayment is a high priority for the administration.”
- “The Department of Education is already communicating with borrowers to help them to help to prepare for return to repayment on February 1.”
- “41 million borrowers have benefitted from the extended student loan payment pause, but it expires February 1, so right now we’re just making a range of preparations.”
Elizabeth Warren and other Democrats have been practically begging Biden not to do this.
FOX Business reports:
In a Wednesday letter addressed to the White House, Senate Majority Leader Chuck Schumer, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Ayanna Pressley, D-Mass., warned that millions of families could be hurt financially and that the economy’s recovery from the pandemic imperiled if Biden does not extend the federal government’s pause on student loan payments.The lawmakers cited an analysis conducted by the Roosevelt Institute, a progressive think tank, showing that resuming student-loan payments in less than two months will “strip” 18 million borrowers of $7.12 billion a month and $85.48 billion annually over the next year…”To prevent the student debt crisis from dragging down on our economic recovery, undermining the effectiveness of the American Rescue Plan, and causing unnecessary pain and stress for American families, we strongly urge you to extend the pause on student loan payments and interest and act to cancel student debt,” they wrote in the letter.
Warren urged Biden to cancel student debt during an appearance on CNN this week:
Rep. Cori Bush of Missouri is already blaming this decision for the outcome of the 2022 midterms:
Democrats had reason to be hopeful about this:
This has never been a good idea. You can’t punish the people who paid off their student loans and reward those who didn’t.
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