United States President Joe Biden speaks in the State Dining Room of the White House in. about crime prevention … [+]
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As an 18-month hiatus in federal student loan payments approaches expires, pressure is mounting on the Biden government to mandate an extension and enact comprehensive student loan waiver.
The CARES bill, which Congress passed in March 2020 in response to the pandemic, has temporarily suspended all payments on government-held federal student loans, suspended interest rates, and suspended all debt collection initiatives. The student loan block has been extended several times. The current extension is set to expire on September 30, 2021 – which means millions of student loan borrowers will resume repayments in October.
Activists and advocates of student loan borrowers have expressed growing concerns about the ability of millions of student loan borrowers to resume repayment abruptly this fall and whether student loan service providers will be able to manage millions of borrower accounts at the same time Resuming repayment – an unprecedented situation.
A diverse coalition of 125 national trade unions, consumer rights organizations and civil rights groups tipped in a letter to President Biden this week calling on him to extend the moratorium and provide comprehensive student debt relief.
The student loan payment hiatus has been one of the most important investments the federal government has made in the financial lives of Americans in a generation – a realization that the inadequacies of the existing student loan safety net fail to protect families amid an economic and public health crisis “Wrote the organizations. “There is broad consensus among borrowers, attorneys, industry, regulators, law enforcement officers, and lawmakers that a rush to resume student loan payments is a recipe for disaster and will lead to widespread confusion and distress for student loan borrowers. Before student loan payments can resume, the Department of Education must implement significant structural reforms, provide real, immediate relief, and cancel a significant portion of the federal student debt. This will ensure that millions of borrowers don’t get trapped in a broken system while the economy begins to recover. For the reasons outlined above, we urge you to take immediate action to extend the current student loan payment pause. “
Elected officials are also stepping up the pressure campaign. “The student loan payment hiatus has been a huge relief for families, but it will end in 100 days,” Senator Warren said in a tweet on Wednesday. Warren and other progressive Democrats wrote a letter to President Biden this week asking President Biden to extend it for at least another 6 months [the U.S. Department of Education] more time to prepare and more time for borrowers and our economy to recover. ”Warren also urged Biden to cancel the student debt.
Surveys suggest that the vast majority of student loan borrowers support an extension of the moratorium. A survey conducted by Student Debt Crisis and Savi found that 9 out of 10 student loan borrowers will not be ready to resume payments on October 1, and nearly two-thirds of those surveyed do not think they will be ready until September 2022 or beyond To resume payments.
“Our [survey] proves that pandemic relief for student loan borrowers remains critical to the well-being of millions of families, ”said Natalia Abrams, Executive Director of Student Debt Crisis. “Even as an economic recovery gains momentum, many Americans are still bearing the economic damage caused by the pandemic. A large majority of respondents say they are unwilling to resume student loan payments in October when the relief is due to expire. We are calling on the Biden administration to extend the federal student loan payment and interest hiatus to give Americans a chance to stay on their feet as the health crisis subsides and the economic recovery picks up.
Education Minister Miguel Cardona this week admitted growing pressure to extend the student loan break. However, he made no commitments to a further extension. “We are aware of the impact of the pandemic on our borrowers. And extending the break is something we have been talking about … We plan to release information soon. The restart is now on September 30. “
The Biden government has also not yet announced the completion of an ongoing review to determine whether the president has legal authority to unilaterally cancel the student loan debt through executive action. Biden has advocated full student loan issuance in the past, but was skeptical that this could be enforced through executive power.
further reading
Elizabeth Warren to Biden: Extension of Student Loan Break to 2022 or Later Or
Will Biden cancel the student loan debt? Maybe we will know soon
Biden Administration Will Cancel $ 500 Million Student Loans – Important Details
Biden’s Student Loan Forgiveness Review: Should You Take Steps Now to Relieve Student Debt Later?
source https://collegeeducationnewsllc.com/pressure-builds-on-biden-to-extend-student-loan-pause-and-cancel-student-debt-heres-where-things-stand/
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