President Biden Releases Statement Regarding Student Debt Forgiveness

The Latest:

President Biden releases a statement in reference to the student debt loan extension on Wednesday, April 6th highlighting the current strength of the economy in comparison to the previous year. He stated the country is still recovering from the pandemic and the economic disruption it caused.

Some Democratic lawmakers have pressured Biden to cancel up to $50,000 of student loan debt per borrower. During his presidential campaign, President Biden expressed his support for some federal student debt cancellation but has yet to move forward with an executive order. Biden has however urged Congress to pass legislation that cancels up to $10,000 of student loan debt per borrower.

In preparation for repayment, the Department of Education stated it will grant borrowers with paused loans a “fresh start” on repayment by eliminating any delinquencies associated with their account.

Borrowers can expect to receive a billing statement or other notices at least 21 days before their payments are due. Individuals who can no longer afford their monthly payments may be eligible for an income-based repayment plan. Depending on income and family size, monthly payments can be as little as $0 a month.

Original Story:

WASHINGTON — The Biden administration plans to freeze federal student loan payments through Aug. 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic.

The decision was confirmed by an administration official familiar with the White House’s decision-making.

Student loan payments were scheduled to resume May 1 after being halted since early in the pandemic.

But following calls from Democrats in Congress, the White House plans to give borrowers additional time to prepare for payments.

The decision was first reported by Bloomberg.

The action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government.