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Biden Administration Extending Pause on Federal Student Loan Payments Through August

Biden Administration Extending Pause on Federal Student Loan Payments Through August

“The repayment freeze, which has been in place since the beginning of the pandemic, had been scheduled to expire on May 1.”

They just keep kicking the can down the road on this, as people like Bernie Sanders keep pushing for total cancellation of the debt.

CNN reports:

Biden administration extends pause on federal student loan repayments through August

The Biden administration is extending a pause on federal student loan repayments through August 31.

The repayment freeze, which has been in place since the beginning of the pandemic, had been scheduled to expire on May 1.

In a statement Wednesday, President Joe Biden acknowledged that the economy is stronger than it was a year ago but that “we are still recovering from the pandemic and the unprecedented economic disruption it caused.”

“That additional time will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs,” he said.

Borrower balances have effectively been frozen for more than two years, with no payments required on most federal student loans since March 2020. During this time, interest has stopped adding up and collections on defaulted debt have been on hold.

Both Biden and former President Donald Trump have taken actions to extend the pause. Biden had previously moved the payment restart date on three different occasions.

When the Biden administration extended the pause from September 2021 to the end of January 2022, it warned that it would be the final extension. But the President pushed back the date again as Covid-19 cases were on the rise during the winter.

Recently, Biden has been facing pressure from other Democrats and consumer advocate groups to move the date once again due to inflation and ongoing supply chain issues that make everyday items more expensive for households. Dozens of Democratic lawmakers sent a letter to Biden last week urging him to extend the pause until at least the end of the year.

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Comments

Just now I went to the website where I make my student loan payments. It says “flexibilities” have been extended through August. It also says my payments resume in June.

Maybe they haven’t updated it completely yet. Or maybe “flexibilities” – whatever that means – is all they are really extending. It would be nice to know for sure.

IneedAhaircut | April 7, 2022 at 12:29 pm

Some years ago (4-5???) a wealthy gentleman giving a commencement address and announced that he was paying off the debt of the graduating class. They had to do some work behind the scenes to avoid tax issues, but in the end I believe he was able to do it.

I’d love to see a two-pronged approach:

1) push the truly wealthy to chop away at the existing debt. If Bill Gates thinks health care is in crisis, let him pay off the debt of a few thousand doctors and nurses.

2) attack the source issue of grossly overpriced higher education. Only fund the core service of education and zero out social services, sports, clubs, greek life, etc. If the budget item isn’t for the classroom it gets the axe.

healthguyfsu | April 7, 2022 at 2:00 pm

It won’t stop in August.

November is just around the corner and there are votes to buy.

The Gentle Grizzly | April 7, 2022 at 9:09 pm

You looked me president. I’ll call in all the loans of those who took styrofoam majors.

henrybowman | April 7, 2022 at 9:23 pm

How much does it cost? I’ll buy it! /
Time is all we’ve lost! I’ll try it! /
He can’t even run his own life /
I’ll be damned if he’ll run mine…

They aren’t getting all paid back so might as well start forgiving.