Biden May Extend Student Loan Relief Beyond September 30, Even If Unemployment Benefits And Eviction Moratorium Will End

President Joe Biden (Photo by Jenny Anderson / WireImage)

WireImage

The student loan disbursement may be delayed beyond September 30, even if the unemployment benefit and eviction moratorium expire.

Here’s what you need to know.

Student Loans

Student Loan Borrowers Senator Elizabeth Warren (D-MA) and now some members of the Department of Education are all campaigning for President Joe Biden to extend the student loan facility beyond September 30, 2021. The following student loan reliefs are currently planned: Expire on this date:

• no federal student loan payments;
• 0% interest on federal student loans; and
• no collection of defaulting student loan debts, including wage garnishment.

Some have called for this temporary student loan relief to be extended until March 31, 2022. Others have said they will postpone student loan payments until “the end of the Covid 19 pandemic” without specifying a specific date or how “the end” will be determined. Others hope for an extension of any kind, even for a month or until the end of the year. If student loans are not suspended again, some say these 4 things will happen.

However, there is no guarantee that this student loan temporary deferral will be extended. At the same time, the federal government is ending two popular financial aid programs during the Covid 19 pandemic. Extended unemployment insurance ends this summer and will not be extended. Similarly, the Center for Disease Control (CDC) state eviction moratorium will end on July 31, 2021 and will not be extended. (However, there may be some similar aid programs at the state and local levels). So what about student loan facilitation? Can the President continue the student loan relief after the end of unemployment benefits and the eviction moratorium? Yes, but there are political and political implications. Here are the pros and cons for Biden to extend the Student Loan Facilitation beyond September 30th:

Student Loans: Supporters say the student loan facilities will be extended

Proponents of extending the student loan facility beyond September 30 cite several reasons, including:

• The Covid-19 pandemic is not over yet;
• Millions of student loan borrowers have financial difficulties paying student loans;
• The economy has not recovered from the effects of Covid-19;
• 90% of student loan borrowers are unwilling to return to student loan payments;
• Student loan payments will disproportionately harm People of Color and student loan borrowers with lower incomes or the unemployed; and
• Resuming student loan payments will hurt the economy as student loan borrowers who have to repay student loans will not have enough money to spend in their local economy.

Student Loans: Opponents say the end Student loan relief

Opponents of an extension of the student loan waiver beyond September 30 cite several reasons, including:

• The disruption in student loan payments means that taxpayers bear the cost of student loan borrowers;
• Student loan borrowers have been granted a temporary deferral on student loans for a total of approximately 18 months since March 20;
• Student loan borrowers will have canceled more than $ 90 billion in student loan terms by September 30;
• The Biden government says the economy is recovering and it would be mixed message to say now that the economy is so bad that student loan borrowers need even more time to pay off student loans.
• The extended unemployment insurance and the eviction moratorium end. Why should student loan borrowers get relief when other substantial reliefs are expiring?
• There seems to be no difference between student loan borrowers who can afford to pay off their student loans after September 30th and those who cannot, making a potential renewal unfair and inefficient.

Student Loans: Final Thoughts

A final decision has not yet been made on whether or not to extend the student loan relief beyond September 30th. If Biden extends the student loan facility, there are several options. If there is no extension, the Department of Education will notify you of the student loan disbursement for federal student loans starting October 1, 2021. This temporary deferral discussion is separate from the ongoing discussion about terminating the student loan. Biden has cut $ 3 billion in student loans since taking office as president. That includes $ 1.5 billion in student loans that Biden canceled this way. Biden has continued to and will continue to specifically cut student loans. If there is no extension, contact your student loan service provider to update your autopay and bank account information if necessary, as well as to check your student loan balance and interest rate. Also, make sure to review your student loan repayment options so that you can save money:

Student Loans: Read More

Is this a game changer for student loan termination?

Biden may extend student loan relief beyond September 30, but there is one major dilemma

Democrats propose 5 changes to student loan cancellation

Supreme Court Denies Student Loan Termination – Here’s What Happened

source https://collegeeducationnewsllc.com/biden-may-extend-student-loan-relief-beyond-september-30-even-if-unemployment-benefits-and-eviction-moratorium-will-end/