Biden is going to put off paying off his student loans again, as the Democrats want to forgive them.
According to the Associated Press, President Joe Biden proposes to extend the suspension on federal student loan payments through August 31, citing a government official. Student debt limbo will last another three months for tens of millions of Americans.
Since the hiatus began in March 2020, this will be the sixth prolongation. As a result of Russia’s invasion of Ukraine, inflation is rising and gas prices are skyrocketing. Meanwhile, the $1.7 trillion student loan debt portfolio in the United States continues to expand, with no clear path for the burdened.
According to the Education Department, the freeze saves 41 million borrowers $5 billion every month.
Though debtors will certainly enjoy the additional leeway, many have been irritated with the continuous extensions in the absence of a strategy for universal forgiveness. The activities of the Biden administration are anticipated to be criticised by both conservative and liberal legislators.
Some Democrats, notably Senate Majority Leader Chuck Schumer and Massachusetts Senator Elizabeth Warren, have pressed Biden to utilise his executive power to forgive up to $50,000 in student loan debt per borrower. Hundreds of Democratic senators sent a letter to President Barack Obama on March 31 requesting him to prolong the moratorium until the end of the year and “to offer real student debt elimination.”
However, Biden has said that any action must come from Congress. With a Senate that is equally divided and Republicans who are adamantly opposed to debt forgiveness, this is going to be an uphill struggle. During his campaign, the president promised to forgive up to $10,000 in debt per borrower.
Pelosi agrees with Biden: “The president does not have the authority to eliminate student loan debt,” she declares, defying leading Democrats.
The moratorium, according to conservative advocacy organisations headed by Grover Norquist’s Americans for Tax Reform, has been unduly helpful to individuals with student loan debt at the cost of others without a higher degree. They wrote to Education Secretary Miguel Cardona on March 8 requesting him to resume payments as a means of reducing the national deficit and combating inflation.
Meanwhile, debtors are becoming increasingly adamant in their demands for loan forgiveness on a large scale.
Borrowers from California, Florida, New York, Massachusetts, Ohio, and Pennsylvania went to Washington on Monday to encourage President Barack Obama to forgive student loan debt. They gathered in front of the Education Department, holding placards that said “Can’t Pay, Won’t Pay” and “You Are Not a Loan.” The Debt Collective, a debt cancellation advocacy organisation, organised the event.