WASHINGTON – President Joe Biden intends to further suspend the student loan until August 31, the Associated Press said in a statement with a senior government official. For tens of millions of Americans, student debt will continue for another three months.
This step marks the fifth increase since the suspension in March 2020. At the same time, inflation is rising and gas prices are rising in line with Russia’s invasion of Ukraine. Throughout this time, the country’s $ 1.7 trillion student debt is growing without a strong debt policy.
According to the Ministry of Education, the power outage will save $ 40 million a month.
While borrowers may be interested in additional carving space, many are concerned about the steady increase without an overall repayment plan. All safe and free politicians are expected to call for action by the Biden regime.
Some Democratic lawmakers, including Senate Majority President Chuck Schumer and Massachusetts senator Elizabeth Warren, have put pressure on Mr. Biden to use his $ 50,000 debt-free student debt. As late as March 31, a majority of Democratic lawmakers sent a letter to the president urging him to extend his stay until the end of the year and “grant a student loan cancellation.”
But Mr. Biden said he believed such action should come from Congress. There is likely to be a war going on, the Senate is equally divided and Republicans are strongly opposed to debt relief. The president launched a campaign to cancel the $ 10,000 debt.
Human rights groups led by Grover Norquist, an American tax reform spokesman, said the suspension has been very generous to those with student debt while excluding people without higher education. On March 8, they sent a letter to Miguel Cardona, Minister of Education, calling on him to resume payments to address the country’s deficit and fight inflation.
At the same time, borrowers are increasingly demanding their call for debt relief.
On Monday, borrowers in California, Florida, New York, Massachusetts, Ohio, and Pennsylvania went to Washington to force the president to write off student loan debt. They gathered at the Department of Education with the labels “You can’t pay, you can’t pay” or “You can’t get debt.” The event was organized by the Debt Collective, an interest group dedicated to debt cancellation.
Borrowers who took part in the protest said they had stopped paying bills but wanted a long-term termination of the contract. He said repeated growth makes it difficult for them to plan.
“The break doesn’t change the fact that it wasn’t bought,” said Elisha DeJesus, a pediatrician in Massachusetts.
Jesus has about $ 40,000 in student debt. He said that with recent inflation, it would be difficult to reschedule payments. When he returns to work in the office, he pays more for gas.
Regardless of when the payment starts, the government faces the challenge of repaying the loan. A January report by the state reporting agency found that about half of the $ 3,300 million frozen debtors were at high risk of crime.
People at risk include people who have misbehaved before leaving the loan, dropped out of university, and have not paid up debt in the last three years due to the cold.
Although it remains unclear whether the president will repay the student loan in bulk, the Ministry of Education has taken steps to provide permanent assistance to creditors. The organization will cancel more than $ 17 billion borrowed from borrowers after Biden takes office. This exception was due to the extension of existing debt relief programs, for example to debtors with permanent disabilities or abducted by schools.
For example, the agency recently announced that 100,000 borrowers have benefited from a change they announced in October in the public service loan forgiveness program. This would make it clear to debtors of about $ 6.2 billion. And the government has sent another $ 450 million to 16,000 students who have been robbed by for-profit universities.