Student loans

Biden's extension of the pause in student loan payments would mark the fifth time the government has continued the freeze, without wide forgiveness.

On Monday, borrowers from California, Florida, New York, Massachusetts, Ohio and Pennsylvania traveled to Washington to press the president to cancel student loan debt. Regardless of when payments restart, the government is expected to face challenges in getting borrowers to resume their payments. Conservative advocacy groups, led by Grover Norquist’s Americans for Tax Reform, say the moratorium has been overly generous to those with student loan debt at the expense of those without a higher education. The president had campaigned on forgiving up to $10,000 in debt per borrower. This time, inflation is climbing and gas prices are soaring in connection to Russia’s invasion of Ukraine. All the while, the nation’s $1.7 trillion student loan debt portfolio continues to grow, with no firm direction for the indebted. Some Democratic lawmakers, including Senate Majority Leader Chuck Schumer and Sen. Elizabeth Warren of Massachusetts, have been pressing Biden to use his executive authority to cancel up to $50,000 in student loan debt per borrower.

The White House plans to once again extend the moratorium on federal student loan payments through the end of August, according to multiple people familiar ...

Biden administration officials had signaled in recent weeks that they were likely to extend the relief, telling federal student loan servicers to hold off on sending notices to borrowers that their monthly payments would be starting. But other more centrist Democrats in Congress, some of whom are up for reelection this year, had also called on the Biden administration to at least extend the moratorium into next year. The various extensions of the payment pause have cost more than $100 billion, according to Education Department estimates. They’ve called for a partial extension of the pandemic relief that is targeted only to borrowers who are struggling. But some economists have argued that the extension itself could add to the inflation crisis. Just last week, nearly 100 lawmakers led by Sen. Elizabeth Warren (D-Mass.) and Majority Leader Chuck Schumer sent a letter to Biden asking him to extend the pause “until at least the end of the year.”

President Biden will allow millions of federal student loan borrowers to freeze their payments until Aug. 31, according to an administration official ...

One of Mr. Biden’s first acts as president was another extension of the payment freeze. “The question of whether or not there’s some executive action on student debt forgiveness, when the payments resume, is a decision we’re going to take before the payments resume.” The freeze began in March 2020, under former President Donald J. Trump, as part of Congress’s CARES Act, and was twice extended by the Trump administration. “There’s obviously a huge amount of pressure, including from the Senate majority leader, to just cancel student loans,” Ms. Erickson said. The Education Department, the primary lender for most people who borrow for college, outsources its collection work to outside vendors. While the extension’s effect is probably very small, it could make the Fed’s job harder, at the margin, as it tries to cool off demand. That poses a further challenge, as strong consumer demand has collided with constrained supply chains, labor shortages and a limited supply of housing to push prices higher. The four-month delay means the pause will become an issue again before the midterm elections and remain a rallying cry for student debt activists who have called for Mr. Biden to cancel at least some debt outright. But Mr. Biden has resisted that approach, saying he would prefer for any debt cancellation to happen legislatively. Payments delayed again. It’s a view shared by some members of Mr. Biden’s party. Those debts have not been accruing interest, and seven million borrowers in default have received a break from paycheck garnishments and other collection efforts.

WASHINGTON (AP) — The Biden administration plans to freeze federal student loan payments through Aug. 31, extending a moratorium that has allowed millions ...

Last year, Biden asked the Education and Justice departments to review the legality of widespread debt cancellation, but no decision has been announced. It remains in question whether Biden will pursue widespread debt forgiveness to reduce the nation’s student debt. The Trump administration initially gave Americans the option to suspend loan payments in March 2020, and Congress made it automatic soon after. In March, the St. Louis Federal Reserve Bank warned that resuming loan payments could place a heavy burden on borrowers who faced financial hardship during the pandemic. Student loan payments were scheduled to resume May 1 after being halted since early in the pandemic. “It is ruining lives and holding people back,” she said in a statement last month.

The Biden administration is planning to extend a pause on federal student loan repayments through August 31, according to an administration official ...

The pause on payments is even more significant for those who work in the public sector and may be eligible for federal student loan forgiveness after 10 years. The Department of Education has said that borrowers can expect to receive a billing statement or other notice at least 21 days before their payment is due. If federal student loan borrowers can no longer afford their monthly payment once they resume, they may be eligible for an income-driven repayment plan. The report may underestimate the relief because it doesn't take into account the added benefit that those pursuing Public Service Loan Forgiveness receive from the payment pause. Some federal loans that are guaranteed by the government but not technically held by it, known as Federal Family Education Loans, or FFEL, did not qualify. Biden had previously moved the payment restart date on three different occasions.

no mandatory federal student loan payments; · 0% interest rates on federal student loans with no interest accrual; and · no collection of student loans in default ...

( Biden could extend the student loan payment pause forever). For political gain, it’s possible that Biden could extend the student loan payment pause for a fifth time through November 2022. For example, Sen. Patty Murray (D-WA) called on Biden to extend the student loan payment pause until 2023. President Donald Trump extended the student loan payment pause twice during his presidency as well. Huge news for student loan borrowers: the student loan payment pause could now be extended until August 31, 2022. Currently, the student loan payment pause is scheduled to expire on May 1, 2022.

The Biden administration is gearing up to once again extend the suspension of federal student loan payments, according to people familiar with the matter.

“Taxpayers have been footing the student loan bill for graduate students and Ivy League lawyers to the tune of $5 billion every month while their wallets are being drained by skyrocketing inflation,” Foxx said in a statement Tuesday. “The arrogance of this administration is astonishing. The White House had signaled another extension was in the works. Some are pressing Biden to cancel some portion of the $1.7 trillion dollars in outstanding student debt through executive action. The widely anticipated extension means some 41 million people will continue to spend the next few months without interest accruing on their debt and with more time to save money. “Extending the moratorium is not enough. “Frankly, four months is not enough time to fix a system that has been broken for decades,” Abby Shafroth, interim director of the National Consumer Law Center’s Student Loan Borrower Assistance Project. “The Biden Administration has begun work on important systems reforms, but these solutions are still being ironed out and won’t be ready to implement by August.”

The Biden administration is expected to extend the student loan freeze once again, this time through the end of August 2022.

Roughly 37,000 borrowers have not had to make payments on their student loans for more than two years, under a government policy that was first instituted in March 2020 due to the coronavirus pandemic. But given that Biden still doesn’t have enough votes to pass his signature social spending agenda, meaningful legislative action on student debt this year seems unlikely. Federal student loans account for the majority of student debt in the US. Most borrowers eligible for automatic forbearance have taken advantage of the freeze.

The Biden administration is expected to extend its pause on federal student loan payments until Aug. 31.

"The government is not making that money, right? So we needed to take a loan," said Almeda. The Biden administration is expected to extend its pause on federal student loan payments through the end of August, according to sources familiar with White House's decision-making.

The federally mandated forbearance on student loans will expire on May 1, 2022, meaning millions of borrowers will soon be required to resume monthly ...

A series of late payments on your student loan can cause your credit score to drop significantly. However, Kasasa noted that even if a delinquency is added to your credit report, you can make a case to have it removed. Because student loans are a form of debt, your student loan amount and payment history will go on your credit report.

For example, since becoming president, Biden has cancelled $17 billion of student loans for public servants, borrowers with disabilities, and borrowers who for ...

Biden could then to continue to cancel student loans on a targeted basis for select groups of student loan borrowers. Biden could stand firm on not cancelling student loans for all student loan borrowers and simply call on Congress to act. How? While Biden has extended temporary student loan relief multiple times, he has expressed doubt about cancelling student loans for all student loan borrowers without further authorization from Congress. Biden has called on Congress to cancel up to $10,000 of student loans for borrowers and has said he will sign the legislation. ( Biden could extend the student loan payment pause forever). This student loan relief is on the wish list of many student loan borrowers. ( If student loans don’t get cancelled, student loan borrowers threaten to vote against Democrats). One scenario is that Biden ends student loan relief but replaces it with wide-scale student loan cancellation. A fifth option is that Biden finally ends the student loan payment pause and decides not to enact wide-scale student loan cancellation. ( Biden could cancel student loans while ending student loan relief). There has been speculation that Biden will extend the student loan payment pause until after the midterm election on November 8, 2022. ( Student loan cancellation and the student loan payment pause are confusing. Biden has preferred targeted student loan cancellation for specific groups of student loan borrowers. A second option is that Biden extends the student loan payment pause and cancels student loans. For example, following an extension of the student loan payment pause, Biden could announce a plan to enact wide-scale student loan cancellation for all or most student loan borrowers. With Biden reportedly planning to extend student loan relief for four months, more than 40 million student loan borrowers can now rejoice.

The Biden administration extended the freeze on student loan payments yet again, this time until September, and announced a reset for borrowers in default.

You may click on “Your Choices” below to learn about and use cookie management tools to limit use of cookies when you visit NPR’s sites. If you click “Agree and Continue” below, you acknowledge that your cookie choices in those tools will be respected and that you otherwise agree to the use of cookies on NPR’s sites. NPR’s sites use cookies, similar tracking and storage technologies, and information about the device you use to access our sites (together, “cookies”) to enhance your viewing, listening and user experience, personalize content, personalize messages from NPR’s sponsors, provide social media features, and analyze NPR’s traffic.

Robert Kelchen responded that the next Republican administration is likely just to eliminate the federal student loan program; by making repayment unlikely, ...

Young people who are trying to start families and careers—or working parents already in the thick of it—could use some relief. People have to repay every penny that they borrowed, but no more than that. That might get enough support to survive the midterms. For people who take a decade or more to pay back their loans, the interest can become a major part of what they eventually pay. Combine zero interest with free community college tuition, and you’re starting to make a real difference. The political appeal is clear: people have to pay back what they borrowed. But I think we’re miles away from a political environment in which a panacea could pass. Pay back all that you borrowed, but only what you borrowed. The layperson’s objection to debt relief isn’t the cost, really; it’s the concept. The House is still Democratic, but barely, and the coalition includes some folks from conservative districts who are wary of anything too progressive. And if historical patterns hold, the party of the incumbent president usually loses seats in the first midterm election, so even a very tenuous majority is likely to be fleeting. Yesterday some reports on Twitter indicated that the moratorium on student loan payments would be extended for another few months.

Biden is extending the student loan payment pause until August, but he didn't mention widespread cancellation. Here's what borrowers should know.

The agency also said it would continue providing relief to borrowers whose universities defrauded them. But this time, borrowers are feeling the economic pinch of rising inflation and steep gas prices tied to the Russian invasion of Ukraine. Meanwhile, the nation's $1.7 trillion student loan portfolio swells daily. "Clearly, he will do whatever progressives want when they want it." "My administration is extending the pause on federal student loan repayments through August 31st, 2022." Biden did say said the additional time would allow borrowers to build more "financial security," and allow the Department of Education more time to improve student loan programs. "The Department of Education is committed to ensuring that student loan borrowers have a smooth transition back to repayment,” said U.S. Secretary of Education Miguel Cardona. “This additional extension will allow borrowers to gain more financial security as the economy continues to improve and as the nation continues to recover from the COVID-19 pandemic."

President Joe Biden announced that federal student loan borrowers won't have to resume their payments until at least September.

"When the inevitable resumption does finally happen, millions of borrowers will likely miss it and go delinquent because of the false expectations the government is now setting." "What's a borrower to believe or plan for anymore when the government keeps changing its mind?" Borrowers have saved nearly $200 billion during that period, the Federal Reserve has found. "The president is going to look at what we should do on student debt before the pause expires, or he'll extend the pause," Klain said on the podcast "Pod Save America." Nearly 66% of likely voters are in support of the president forgiving student debt, with more than 70% of Latino and Black voters in favor, a recent poll found. - The Biden administration has said it wants to make its decision around forgiving student debt, which it is under intense pressure to do, before turning the payments back on.

During the pause, 1.4 million Michigan borrowers have benefited from a break in paying back their collective $50 billion in debt. Some, taking advantage of the ...

sponsored sponsored sponsored

Education Department plans a 'fresh start' for borrowers as White House extends payment pause through August.

A group of Senate Democrats, led by Sens. Elizabeth Warren of Massachusetts and Raphael Warnock of Georgia, last year called on the administration to remove defaults from all federal student loans. An Education Department official confirmed to POLITICO that the agency would be automatically erasing the defaults of all borrowers covered by the pandemic-related pause. Administration officials have been working through the details on that proposal for months.

The Biden administration on Wednesday announced that it will extend the pause on federal student loan payments to August 31, 2022.

In March, Senator Patty Murray (D-WA) and other advocates urged the Biden administration to use the extended payment pause to transform the federal student loan system. one thing is painfully clear: the student loan system is broken,” said Senator Murray in a statement in March accompanying the release of her proposal. “The payment pause has been a significant federal investment throughout the pandemic, providing essential relief to millions of families during the economic and public health crisis and saving them an average of $393 per month,” wrote top Democratic lawmakers in a letter to Biden earlier this week. Most federal student loan payments have been suspended since March 2020 in response to the Covid-19 pandemic. Biden also promised additional flexibilities and support for borrowers, but stopped short of committing to broad student loan forgiveness. President Trump had originally suspended federal student loan payments and interest using executive action.

President Biden extended the suspension of federal student loan payments through Aug. 31, saying “We are still recovering from the pandemic and the ...

The Trump administration in March 2020 gave borrowers the option of postponing payments for at least 60 days as the coronavirus pandemic battered the economy. A provision in the Coronavirus Aid, Relief and Economic Security Act, or Cares Act, ensured that each month of suspended payments would count toward student loan rehabilitation, a federal program that erases a default from a person’s credit report after nine consecutive payments. Murray said another extension would give the Education Department more time to fix the repayment system with better options for people to manage their debt. Collections on defaulted loans will still be halted, and any borrower with defaulted federal loans whose wages are being garnished will receive a refund. “We continue to implore the President to use his clear legal authority to cancel student debt, which will help narrow the racial wealth gap, boost our economic recovery, and demonstrate that this government is fighting for the people.” But the Education Department typically requires defaulted borrowers to submit an application, a step that consumer groups worry will result in people slipping through the cracks. Education Secretary Miguel Cardona has agreed to waive the program requirements and restrictions, which ensures that people have their negative credit histories cleared without losing the ability to rehabilitate their loans. Congress later codified the reprieve with the Cares Act, and made it automatic. The White House had signaled another extension was in the works. Economists say restarting student loan payments will squeeze the personal finances of millions of adults. Instead, Congress gave those borrowers a pathway to bring their loans back into good standing. Republicans have opposed the move as an unnecessary giveaway at a time when Biden claims the economy is on solid footing.

The Biden administration announced an extension of the federal student loan payment pause Wednesday, delaying the repayment of student loans until August 31 ...

The Biden administration has already extended the federal student loan payment pause several times. While the Biden administration plans to extend the federal student loan payment pause, first reported by Politico, no decision has been announced on canceling student loan debt. Student loan debt is the second largest amount of debt for U.S. consumers behind mortgages. That same group of Democratic lawmakers have also called on the president to cancel student loan debt. Roughly 37 million student loan borrowers have been in limbo for several months over whether the payment pause would be extended. The payment pause was previously slated to end May 1.