Biden administration extends fee pause for pupil mortgage debtors till Could 1
Given concerns about the new Omicron variant of the Covid-19 virus, the Biden administration will extend the payment break for borrowers of federal student loans until May 1.
“We know that millions of student loan borrowers are still dealing with the effects of the pandemic and will need some time before they resume payments,” President Joe Biden said in a statement Wednesday.
Since March 2020, borrowers have had the option to hit the pause button on their monthly bills without paying interest on their debts. Almost all borrowers have accepted the relief, research shows.
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The forbearance should expire at the end of next month, January 31st.
But Democrats and supporters have pressured President Biden to give the 42 million Americans in college debt more time. Another surge in the virus also adds to concerns about the economy and borrowers’ ability to resume payments.
A recent survey of student loan borrowers found that even among those who are now fully employed, 89% are still insufficiently financially secure to resume payments.
Scott Heins, a Brooklyn, New York freelance photographer owed over $ 20,000, said he was relieved by the news. Much of his income dried up during the pandemic.
“Things are getting better and better,” said 33-year-old Heins. “But it remains to be seen how much weight Omicron has on my work.”
US student loan outstanding debt exceeded $ 1.7 trillion, weighing more on Americans than credit card and car debt. About a third of borrowers are in arrears or arrears. The average monthly bill is around $ 400 per month.
Senator Elizabeth Warren, D-Mass., And Senate Majority Leader Chuck Schumer, of New York, applauded the president for giving borrowers more time, but said they expected him to do more for debt relief.
“We continue to urge President Biden to take executive action to cancel $ 50,000 in student debt, which will help close the racial welfare gap for borrowers and accelerate our economic recovery,” they wrote with the MP Ayanna Pressley, D-Mass. , in a statement.
Biden has asked the US Department of Justice and the US Department of Education to review his legal authority to pay the loans without Congress. The results have not yet been released, but the President has so far been reluctant to take such a step.
This is the latest news. Please check again for updates.