President Joe Biden may have suspended student loans, but advocates really want it.
Here’s what you need to know – and what it means for your student loans.
Make no mistake: Biden’s decision to extend the student loan payment hiatus until May 1, 2022 was both a surprise and a game changer for student loan borrowers. The Biden administration, including the US Department of Education, made it clear for months: The temporary student loan forbearance that began in March 2020 would not be extended beyond January 31, 2022. The end of student loan relief had been expected for months, and US Secretary Miguel Cardona said there would be no further extensions. The Education Department even sent out written correspondence to borrowers advising them of the end of student loan relief and how they should prepare to restart student loan payments from February 1. However, that all changed last week when Biden announced that student loan borrowers would get three more months. extension. (Here’s what Biden student loan relief means for your student loans.)
Advocates are excited for more relief for the students …
This is a major victory for student loan advocates who have fought tirelessly to extend student loan payments. (Student loans can be suspended, but here’s why Biden extended student loan relief.) This is now the fifth extension of temporary student loan relief under the Cares Act, the $ 2.2 trillion stimulus package that Congress passed in March 2020. President Donald Trump has enacted the Cares Act , then extended the student loan relief twice after the provisions expired in September 2020. As president, Biden extended the same student loan relief three times, giving student loan borrowers a lifeline. financial rescue during the Covid-19 pandemic. (How to get a student loan discount during the Biden administration). As of March 2020, federal student loan borrowers were not required to make any federal student loan payments, had 0% interest rates, and were not subject to debt collection for student loans suffering. (How to qualify for the automatic student loan exemption). Advocates who have supported the extension of student loan relief include several members of Congress such as Senator Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer. Warren, Schumer and others have pressured Biden in recent months to continue the payment hiatus, saying most student loan borrowers were not financially ready to restart student loan payments in February. (Here’s what student loan payments will look like in 2022). Instead, they asked for more time – with some members of Congress calling for an extension until later this year, while others demanded continued student loan relief until the end of the pandemic. Covid-19.
Student loan relief: now they want student loan cancellation
While some borrowers are delighted with the outcome, other advocates are less enthusiastic. What they really want is the massive cancellation of student loans. (The Department of Education will cancel $ 2 billion in student loans in a few weeks). They see a three-month extension as helpful, but the “real” student loan relief won’t come until Biden cancels student loan debt. Yes, Biden has written off $ 12.7 billion in student loan debt since becoming president. (Biden will not cancel student loans until student loan relief ends). However, some advocates believe this is insufficient. They are demanding that Biden write off at least up to $ 50,000 in student loans for borrowers, as Warren and Schumer have advocated. Others say Biden should simply write off all of the $ 1.7 trillion in student loans, including private and federal debt. For these advocates, student loan relief is not about suspending payments or saving interest charges. Rather, it is the total elimination of student debt. Despite their wishes, Biden does not intend to write off all student loan debt, nor does he support the cancellation of up to $ 50,000 in student loan debt. Biden has repeatedly asked for $ 10,000 in student loans and wants Congress to pass a law he will sign. Rather than taking action, however, progressives in Congress seem more focused on pressuring Biden to cancel student loans than on finding a bipartisan solution to deal with the rising cost of higher education. So even with the additional 90 days of student loan relief, some borrowers will be happy to have more time to prepare for the restart of the student loan repayment, while others will not be satisfied until all of their debts are over. student loan will be canceled.
Student loan relief will not last forever. Make sure you are ready for the restart of the student loan payment. Here are some popular ways to pay off student loans faster: