As the pandemic continues, the job market continues to change and life in general remains full of uncertainty, President Joe Biden did the right thing by once again extending federal student loan payments until January 2022.
“As our country’s economy continues to recover from a deep pit, this final expansion will give students and borrowers the time they need to plan a restart and ensure a smooth return to repayment.” This was stated by US Education Secretary Miguel Cardona.
While it is true that there are jobs in today’s marketplace, many of those who are still paying off student loans have used that money to pursue degrees that they hoped would help them get jobs at a higher wage rate. They hoped their investment would pay off. Thus, while they may be able to earn a living in today’s labor market, these jobs may not offer them the pay that will help them pay off their loans as quickly as they hoped. They need a break right now.
The longer the federal student loan maturity is delayed, the more time we give our economy and business to regain some of the positions lost during the pandemic. The United States is still nearly 6 million fewer jobs than in March 2020, according to the Associated Press.
We are recovering, but not quite yet. We can allow our students more time to pay off costly loans as we give our economy more time to get them back into a position where they can afford it.