JOE Biden has endorsed plans to extend the hiatus on federal student loan payments until 2022 – but Democrats say the measure “doesn’t go far enough.”
Payments were halted last year after Congress passed the CARES law and were due to restart in September – but that has now been pushed back to January 31.
Biden’s administration, however, called it a “final extension.”
Those who have borrowed money do not need to make payments during this period and interest will not be added to the remaining balance.
“The payment break has been a lifeline that has allowed millions of Americans to focus on their families, health and finances instead of student loans during the national emergency,” the secretary said. ‘Education, Miguel Cardona, in a statement.
“As our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment.”
But some Democrats, this is not enough, as they have called on the president to write off $ 50,000 in student debt per borrower through an executive order.
“While this temporary relief is welcome, it does not go far enough,” Senate Majority Leader Charles Schumer, Senator Elizabeth Warren and Representative Ayanna Pressley said in a statement.
“Our broken student loan system continues to exacerbate racial wealth gaps and dampen our entire economy.”
The extension was criticized by Republicans, with Rep. Virginia Foxx calling it “irresponsible delay.”
“Its extension does a disservice to borrowers across the country, and our children will pay the ultimate price for this irresponsible delay,” she said.
“Secretary Cardona is using the continuing narrative of the pandemic to wield power rather than adopt responsible solutions to help borrowers get back on track. I regret that Secretary Cardona has not shown a real leadership in working with Congress to responsibly deliver the portfolio for repayment by October 1 of this year.
“It is nothing less than a dereliction of duty.”
It comes after the Education Department wrote off about $ 56 million in student debt to some 1,800 borrowers last month.
About $ 1.5 billion in student loan debt was written off in total by the Biden administration.