Biden administration extends pandemic student loan debt relief until January 31, 2022
The administration says this is the “final extension”.
The Biden administration has announced that it is extending the pandemic relief for student loan repayments, interest and collections until Jan.31, 2022, calling it a “final” extension.
The hiatus has been in effect since former President Donald Trump signed the CARES Act in March 2020 and was extended by him and President Joe Biden. It was recently due to expire on September 30.
“As our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment,” said Education Secretary Miguel Cardona in a statement. “The ministry’s priority is to support students and borrowers during this transition and to ensure they have the resources they need to access affordable, high-quality higher education. “
The Education Ministry says the extension will give borrowers time to plan for resuming payments and reduce the risk of default and default.
Senate Majority Leader Chuck Schumer, Senator Elizabeth Warren and Representative Ayanna Pressley applauded the move in a joint statement Friday afternoon.
“We are delighted that the Biden administration has responded to our call to extend the pause on student loan payments held by the federal government, offering tremendous relief to millions of borrowers facing a dire financial cliff,” he said. they stated. “The payment break has saved the average borrower hundreds of dollars a month, allowing them to invest in their future and support their family.”
Yet the group of lawmakers want the president to go further and use executive action to write off $ 50,000 in student debt.
“Canceling student debt is one of the most important actions President Biden can take right now to build a fairer economy and fight racial inequality,” the statement said.
House Speaker Nancy Pelosi, however, said last month that the president does not have the power to write off student debt and only Congress has that power.
“He can postpone, he can delay, but he doesn’t have that power,” she said at a press conference.
Borrowers will be notified of the new extension “in the next few days” and the education department is expected to provide information on how to plan for the resumption of payments.