Biden extends break in student loans

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The Department of Education said Wednesday night that, at the request of President Joe Biden, it will continue to provide student loan borrowers with a nine-month break in their monthly payments until September 30. updated the pause has been extended to reflect. The department said that the order came from Phil Rosenfelt, who was appointed acting secretary for education. However, borrower advocacy groups urged him to go further.

“Borrowers of all ages often face difficult choices between paying off a student loan, investing in their long-term financial future, or paying bills. The pandemic has only exacerbated the economic hardships of millions of Americans with student debt, ”Biden said in a decree he issued after he was sworn in as president.

The move was expected after David Kamin, who will be deputy director of the National Economic Council, told reporters on January 11, Biden will continue the hiatus, which was supposed to end on February 1. Fireplace, however, did not say how long borrowers would receive a pay break.

The move is the latest that extension borrowers have received from having to resume payments after former President Trump imposed a moratorium in August until the end of last year. With borrowers having to make payments again, then Education Minister Betsy DeVos extended the moratorium on December 6 to February 1.

Others, however, such as new Senate Majority Leader Chuck Schumer, a New York Democrat, and Elizabeth Warren, a Massachusetts Democratic Senator, urged Biden to go further by writing off $ 50,000 from all student loan borrowers and bypassing Congress. through the executive order.

On Wednesday, human rights groups praised the extension of the pause, but continued to push for an increase. “This is an important first step that will help millions of Americans in need,” Mike Calhoun, president of the Center for Responsible Lending, said in a statement, but added: “We hope the administration will consider the possibility of widespread cancellation of loans. who can provide families with a path to equity and financial progress. “

Aaron Ament, who served as Chief of Staff of the General Counsel for the Department of Education in the Obama administration and now leads the student protection advocacy group, also called on Biden and his candidate for Education Minister Miguel Cardona to go further.

The student defense called on Biden to take other steps through enforcement action, including canceling student loans for disabled borrowers and those who have been defrauded by commercial colleges.

“President Biden and Dr. Cardona will have the right to take immediate action to bring tangible benefits to the millions of student loan borrowers, as well as strengthen the Department’s law enforcement powers to eradicate predatory colleges,” Ament said in a statement.

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