Here’s who wants President Joe Biden to extend student loan relief.
Here’s what you need to know – and what it means for your student loans.
As student loan relief from the Covid-19 pandemic is set to expire on January 31, 2022, a growing list of individuals and organizations is pressuring Biden to extend the student loan payment hiatus. Some want the temporary forbearance of student loans to be extended until March 31, 2022 or September 30, 2022. Others want student loan relief to be extended until the end of the Covid-19 pandemic. That said, student loan payments for federal student loans are expected to resume on February 1, 2022. (Prepare for the end of student loan relief). Here’s a list of everyone who wants Biden to extend student loan relief.
Deferring student loan repayments: 200 advocacy groups
In a letter to Biden, the Student Borrower Protection Center, a non-profit student loan advocacy organization, joined 200 organizations (including the ACLU, NAACP, and the American Federation of Teachers) to urge Biden to postpone the restart federal student loan payments. (This comes as the Education Department cancels $ 2 billion in student loans in a matter of weeks.) They argue that restarting student loan payments on February 1, 2022 is not only a financial issue, but also a health emergency with the ongoing Covid-19 pandemic and the emergence of the Omicron variant. According to the letter: “In less than 60 days, tens of millions of student loan borrowers are expected to be fired in repaying federal student loans they are ill-equipped to pay as the deadly Covid-19 pandemic continues to grow. devastating Americans ”health and financial security. Clearly, payments shouldn’t resume until your administration fully delivers on the promises you made to student loan borrowers to mend the broken student loan system and cancel federal student debt. (Here’s who qualifies for the student loan waiver right now).
Extend student loan relief: US senators
A group of U.S. senators – including Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA) – have said Biden must extend student loan relief to avoid financial disaster for over 40 million student loan borrowers. (Here are the 5 worst things to do for your student loans). Senators say resuming student loan payments will cause significant financial stress in the wake of the ongoing Covid-19 pandemic. Specifically, they cite a study by the Roosevelt Institute which shows that failing to defer student loan payments beyond January 31, 2022 will cost student loan borrowers $ 85 billion. They argue that 9 million defaulting student loan borrowers could be subject to payday garnishment and other methods of debt collection if student loan payments resume. In addition to severely damaging the economy, senators note that black and Latin households would face a disproportionate burden of resuming student loan repayments. (Here’s how to get a student loan discount during the Biden administration).
Student loan borrowers say not to restart student loan payments
There is at least a contingent of student loan borrowers who are unwilling to restart student loan payments. Since March 2020, most student loan borrowers have benefited from continued student loan relief. (How to qualify for the automatic student loan exemption). This temporary student loan forbearance does not include any mandatory federal student loan payments, 0% federal student loan interest rate, and no student loan default recovery. As of January 31, 2022, student loan borrowers will have received $ 110 billion in student loan cancellations after 22 months of temporary student loan forbearance. (5 Ways Biden Could Cancel More Student Loans). A recent survey by the Student Debt Crisis Center, a non-profit organization focused on student debt, revealed alarming statistics on student loans and student loan repayments. According to the survey, 89% of fully employed student loan borrowers say they are not “financially secure” enough to restart federal student loan payments on Feb. 1, while 21% say they will. never be financially secure enough to any student loan repayment again. (How to get a student loan discount)
Will student loan relief be extended?
Will student loan relief be extended? After Congress passed the Cares Act in March 2020, which provided student loan relief due to the Covid-19 pandemic, President Donald Trump twice extended the temporary student loan forbearance for another four months . Biden also extended forbearance on student loans on two occasions until Jan.31, 2022 for another year. However, the Biden administration has said there will be no further extension of this student loan relief. (No, Biden will no longer extend the student loan relief). Federal student loan payments will resume from February 1, 2022. Despite pressure from congressional progressives, student loan borrowers and advocacy groups, Biden is not expected to postpone the break in student loan payments. Some speculated that Biden would enact a full-scale student loan cancellation before the temporary student loan forbearance ended. Schumer and Warren, for example, are asking for up to $ 50,000 for student loan cancellations over the next two months. However, don’t expect Biden to cancel student loans until student loan relief ends.
To conquer your student loans, make sure you understand all of your student loan options. Here are some popular ways to pay off student loans and save money: