President Joe Biden wants Congress to extend the eviction moratorium, but it did not renew the student loan benefits to the millions of student loan borrowers.
Here’s what you need to know.
Biden is urging Congress to extend the federal eviction moratorium, which prohibits homeowners from evicting non-rent tenants during the Covid-19 pandemic. The eviction moratorium that helped millions of Americans struggling financially during the pandemic expires on Saturday. The US Supreme Court ruled last month that an act of Congress would be required to extend the eviction moratorium. As Biden calls on Congress to extend the eviction moratorium, the temporary student loan exemption for millions of student loan borrowers expires on September 30, 2021. Student loan borrowers may wonder, “When will Biden extend the student loan exemption?” To date, Biden has not renewed the student loan exemption, which means Student loan payments will resume from October 1st.… Senate Majority Leader Chuck Schumer (New York State) and Senator Elizabeth Warren (Massachusetts) urged Biden to extend the temporary abstinence from issuing student loans until at least March 2022. so that borrowers of student loans have more time to recover from the Covid-19 pandemic. Schumer and Warren are worried about the impending default on student loans, and Warren says that Student Loan Services Unprepared for Student Loan Borrowers to Pay Student Loans Again… Unlike the moratorium on evictions, Biden doesn’t need Congress to act. Biden can extend a temporary grace period for a student loan through executive action, as he did in January for eight months. Why didn’t Biden renew his student loan exemption? Here are some possible reasons why:
1. The student loan exemption does not expire until September 30, 2021, so perhaps Biden is waiting
The eviction moratorium expires on Saturday. However, the student loan exemption does not expire until September 30th. Hence, one of the reasons Biden did not renew the student loan exemption is because there are several months left until the expiration date. Perhaps Biden will wait for a date near the September deadline to make an announcement. Alternatively, Biden could wait to track the economy and the status of the Covid-19 pandemic. So it is possible that Biden Extends Student Loan Benefit Even If Eviction Moratorium And Unemployment Benefit Expires… If Biden extends the Temporary Student Loan Benefit, here’s 5 options he could use…
2. The moratorium on evictions may be considered substantial, while the student loan exemption may be considered optional.
This may be a conflicting view of student loan borrowers, but it is possible that the eviction moratorium and student loan exemptions are treated differently by legislators and administrations. For example, if the moratorium on evictions is not extended, a significant number of families could lose their homes. Unless the temporary refraining from issuing student loans is extended, student loan borrowers may face financial hardship, but the risk of worsening the situation may not be as severe on a relative basis. Of course, the counterargument is that forgoing student loan benefits can also cause serious financial damage to families, which could lead some student loan borrowers to make the difficult choice between paying off the student loan on the one hand and paying for food or housing. with another. It is also possible that some student loan borrowers could lose their home if student loan payments resume.
3. The student loan exemption cannot be extended because student loan borrowers will receive a $ 90 billion student loan cancellation.
It is possible that Biden will not renew student loan exemptions because student loan borrowers will receive Cancellation of over $ 90 billion student loan… According to the US Department of Education, student loan borrowers will receive $ 5 Billion in Student Loan Benefits Every Month cancellation of the temporary student loan between March 2020 and September 2021. Biden has also canceled $ 3 billion in student loans since becoming president.… Since Biden balances the interests of student loan borrowers and federal taxpayers, it is possible that he will decide not to renew the student loan exemption.
4. Biden cannot renew the student loan exemption because it contradicts the idea of economic recovery.
The Biden administration is focused on economic recovery amid the Covid-19 pandemic. If the economy recovers, it is The Biden administration may find it difficult to renew student loan relief… Why? On the one hand, the Biden administration wants to show that America is resilient and that economic growth will continue. On the other hand, if the Biden administration extends the student loan exemption, it will signal that the economy is not recovering, student loan borrowers are in financial difficulty, and therefore further exemption from student loan repayments is essential. This could create a conflicting message, perhaps from the perspective of the Biden administration. For the same reason, you are unlikely to receive $ 2000 per month incentive… The counter-argument is that both may be true: the economy is recovering, but student loan borrowers are still struggling financially and it would be premature to end student loan exemptions during the Covid-19 pandemic.
5. Biden may feel that canceling a student loan is not the best way to provide financial incentives.
It is possible that Biden will not renew the student loan exemption given other economic priorities. For example, Biden is focused on getting his infrastructure plan to Congress. He may also consider other economic incentives to kickstart the economy. New research shows that Student Loan Cancellation May Boost Economy Less Than Incentive Checks And Unemployment Insurance… Thus, Biden could focus on other economic priorities, which could lead to the expiry of the grace period for student loans in September.
If Biden does not renew his student benefits, make sure you have an action plan to pay off your student loan. Here are some clever ways to save and pay off student loans:
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