Federal student loan repayments have been on pause for quite some time as a result of the COVID-19 pandemic. Since the virus began wreaking havoc in the U.S., those with education debt received a temporary breather. For the moment, the U.S. government continues to extend the pause on federal repayments. Now, as student loan repayments were scheduled to begin again in May, President Joe Biden has again delayed the deadline.
At a Glance:
- President Joe Biden plans to extend the moratorium for student loan repayments until August 31st
- Repayments have remained paused since former President Trump signed the CARES Act into action more than two years ago
- Biden has moved the repayment restart date three separate times
Student Loan Repayments Remain On Pause Through Summer 2022
According to the Daily Mail, student loan repayments were set to pick back up on May 1st of this year. However, now, they face another extension. The current pause on federal student loan repayments has remained in place since the very start of the pandemic when former President Donald Trump signed the CARES Act into action. Since taking office, President Joe Biden has delayed federal student loan repayments on three separate occasions. This week, though, he plans to extend the pause through August 31st of this year.
The outlet reports the latest extension will continue to provide Americans with further economic recovery as a result of the pandemic, in combination with inflation as consumer goods surge to record high prices. President Joe Biden signed the last extension into effect in late December.
While the latest extension, set for an official announcement on Wednesday, will enable about 43 million Americans time to better financially situate themselves, many Democratic representatives believe the extensions still don’t provide enough aid.
Rep. Alexandria Ocasio-Cortez said of the extension, “I think some folks read these extensions as savvy politics, but I don’t think those folk understand the panic and disorder it causes people to get close to these deadlines just to extend the uncertainty.”
She shared that many people have needed to sell vehicles, delay medical procedures and prescription orders, and other drastic measures in order to prepare for their student loan repayments.
“It doesn’t have the [effect] people think it does,” she concluded. “We should just cancel them.”
Representatives Push for Further Aid in Regard to American Student Loans
Ocasio-Cortez is not the only representative arguing for further student loan repayment measures.
CNN reports that dozens of Democrats sent a letter to Biden last week urging him to extend student loan repayments at least until the end of this year. Several representatives have called on Joe Biden to reduce student loan repayments, an action he supported during the 2020 campaigns.
NY Rep. Jamaal Bowman addressed President Biden, stating, “You made a promise to the American people and it’s time for you to follow through. Cancel student loans and help us unlock a better and brighter future for over 45 million people in this country.”
Previously, Biden had expressed intent to cancel up to $10,000 in student loan debt for every borrower across the U.S. Key Democratic lawmakers, including Senate Majority Leader Chuck Schumer (NY) and Sen. Elizabeth Warren of Massachusetts, have pressed Biden to cancel up to $50,000 per student loan borrower.