According to reports, President Joe Biden will extend the 90-day student loan repayment suspension through August. The Hill reported that Biden may announce an extended pause on Wednesday. Biden originally extended his pause until May 1, but that was after the sunset.
Initialy, the pause was to offer workers some relief from the coronavirus pandemic. The labor market is now recovering after the pandemic. Students with student loans can find work to repay the legal loan and they are obligated to pay.
The administration has granted $12.5 billion in student loan forgiveness to nearly 640,000 students. Forbes reported that student loan borrowers will receive $110 billion in student loan cancellations after 22 months of temporary student loan forgiveness.
According to the White House, 41 million borrowers have benefited from the suspension of payments. The White House says that 41 million borrowers have benefited from the suspension of payments. However, far-left Democrats call on Biden not to extend the extension to stop the “financial destruction of millions of borrowers”.
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According to Rep. Ilhan Olmar (D-MI), despite the generous financial assistance, the pause must be maintained for Democrats’ political aspirations.
Thomas Gokey, an organizer for the Debt Collective believes that if the payment freeze is not extended, people living beyond their means will soon default.
Gokey stated that if Biden resumes payments on May Day, we know that almost 8 million people would be forced into default. “We don’t need to pause the crisis. We need to end it. With a signature, Biden can cancel federal student loans.
Biden directed the Department of Education last year to examine its authority to forgive all student debts by executive action. The Department of Education has not made public its findings.