Biden administration extended the student loan loan until May

This decision was due to expire at the end of January. ! ! ! ! ! ! ! ! ! ! ! ! !


Biden officials announced on Wednesday that the suspension of student loan payments would be extended until May 1 as the omicron variant of the highly coronavirus infection poses a new threat to the economy.

In a statement, President Joe Biden said "millions of borrowers are still experiencing the effects of the epidemic and need more time before they can start paying."

The White House has insisted for months that Biden will not extend his leave beyond the Jan deadline. 31, warns borrowers that they should be ready to repay in February as the Covid case numbers increase and as concerns about inflation dominate the country.

Biden administration extended the student loan loan until May

DEC. 22, 202101: 46

The language of management has begun to soften in recent days as the omicron diversity is spreading rapidly, White House news correspondent Jen Psaki told reporters Tuesday that Biden has "not yet made a decision" on whether to release another extension.

Debt counselors and other lawmakers from the Democratic Alliance pressured Biden to extend the decision, especially after Sen. Joe Manchin, D-W.Va., has said he will not vote for Biden's Build Back Better Act, placing their hopes in doubt. The White House said the plan would address inflationary pressures by reducing the cost of purchases such as prescription drugs and child care.

"The Omicron diversity is a stark reminder that the epidemic remains a major problem and that Americans cannot afford to be overwhelmed by student debt as they face this health and economic crisis," Natalia Abrams, president of the Student Debt Crisis Center, said in a statement. .

Some Democrats also say it would be a bad political decision for Biden to reopen student loan payments - suspended for almost two years - before a difficult mid-year election.

Attorney Alexandria Ocasio-Cortez, D-N.Y., Wrote on Twitter last week that it was "deceptive" to believe that Democrats could be re-elected without taking action to free students' debts, among other things.

The suspension began in March 2020, when former President Donald Trump signed the CARES Act, which suspended payments in September 2020 and eliminated interest on an estimated 42 million borrowers.

Trump later took administrative action to extend the adjournment until January 2021. Biden, on his first day in office, signed an administrative order that continued until September 30.

Biden's management extended the decision in September, giving creditors until Jan. 31 before they resume payment. The Department of Education said at the time it would be a "last resort" and felt that a "definite deadline" would reduce the risk of crime and non-payment if payments were restarted.

The moratorium does not apply to borrowers with secret loans.

Proponents of her case have been working to make the actual transcript of this statement available online. Biden said he did not believe he had the authority to cancel student loans individually but would support Congress's bill to cancel a $ 10,000 debt per student loan.

In a joint statement Wednesday, Senate Majority leader Chuck Schumer of New York, Sen. Elizabeth Warren of Massachusetts and Rep. Massachusetts Ayanna Pressley applauded Biden for extending the leave but urged him to take drastic action.

"Extending the break will help millions of Americans survive, especially as we win a separate Omicron," they wrote. "We continue to call on President Biden to take steps to cancel the $ 50,000 student debt, which will help close the racial debt gap for borrowers and accelerate our economic recovery."

The White House said the Department of Education was reviewing Biden's legal authority to cancel the student loan debt, but did not give it time to review. White House chief executive Ron Klain had earlier suggested that the review be completed this spring.

The Federal Reserve estimates that Americans owe more than $ 1.7 trillion in student loans by the third quarter of 2021. Studies show that students of color are more likely to take on student debt and to carry on equally. High non-payment rates are among students studying at for-profit institutions