It’s damn time to celebrate: Student loan debt repayment will be paused until at least August 31st! The student loan debt moratorium, in effect since March 2020, has given millions a chance to catch their breath as the coronavirus pandemic ravages (and continues to ravage) our wallets, budgets, and sanity.
The White House is scheduled to announce this latest hiatus on Wednesday, they reported Bloomberg. This extension has an impact more than 43 million borrowers who collectively owe the Feds a whopping $1.6 trillion. During this extension, interest rates are expected to remain steady at zero percent, meaning borrowers will not raise their principal.
Payments were expected to resume in less than a month, on May 1st. Previously, loan repayments were supposed to resume in January, but President Joe Biden announced one the extension to May 1st in December.
Extending the student loan repayment pause is the smallest measure the current government can take in this area. Biden made a campaign promise to eliminate student loan debt, and he should damn well keep it. As a reminder a medium Following a post authored by Biden in April 2020, he authored a series of proposals to ease the burden of student debt on American workers. The most immediate suggestion? “Immediately cancel at least $10,000 per person in student debt, as suggested by Senator Warren amid the coronavirus crisis.” Has it happened yet? nope! Seems like it’s good to do that now Joe!
Calling off loans is the easiest way to generate goodwill for the ruling party ahead of a historically difficult midterm election. And we know he has the data to support the implementation of that proposal: A year ago this week, Biden requested a report from the Department of Education to determine if he could legally do so forgive up to $50,000 in student loan debt per borrower. This memo has yet to be made public.
On Monday, Borrowers rallied in Washington, DC to urge Biden to do so finally, for the love of God, cancel student loan debt. While this news is definitely a good sign, people can only be fed with such long breaks. Enough stopped. Break that shit up.
https://jezebel.com/student-loan-repayments-are-paused-again-baby-1848753277 Biden announces another pause in student loan repayments