President Joe Biden asks student-loan borrowers to 'do their part' in preparing for payments to resume on May 1 as pressure for broad cancellation ramps up again

[NelsonG]

Image Credit: Drew Angerer/Getty Images

Biden extended a student-loan-payment pause an additional three months through May 1.

He said borrowers should use this extra time to prepare for the resumption of payments.

But some lawmakers and advocates said this extra time should be used to cancel student debt.

Last month, President Joe Biden gave 43 million federal student loan borrowers an additional three-month Christmas present.
While the president said borrowers should use this extra time to prepare for resuming payments  on May 1, some lawmakers and advocates have said it should  be used to write off student debt instead.

On December 22, the Education Department announced it would move the target date for resuming student loan repayments from February 1 to May 1, citing the Omicron coronavirus variant as the main reason for the change. Without specifying whether this  would be the "final" extension, contrary to the August announcement, Biden urged federal borrowers in a statement to use the extra time to prepare for repayment in 90 days.

“As we take this step, I also call on all student loan borrowers to do their part: make full use of the resources of the Department of Education to help you prepare for the resumption of payments; examine options for reducing payments through income repayment plans; explore the public service loan remission; and make sure you're vaccinated and boosted when you're eligible, ”Biden said in December.
Education Secretary Miguel Cardona echoed the sentiment, saying in a statement that the ministry "will continue to provide tools and support to borrowers so that they can participate in the repayment plan which is sensitive to their needs. financial situation, like a plan.The extension adds to the nearly $ 12 billion  student debt that Biden has written off for targeted groups of borrowers, such as those scammed by for-profit schools, since taking office.

Leading lawmakers on the massive student debt cancellation have applauded Biden's extended suspension of payments. Senate Majority Leader Chuck Schumer, Massachusetts Senator Elizabeth Warren and Massachusetts Representative Ayanna Pressley said in a statement  the hiatus allowed borrowers to "make ends meet" and pay for basic necessities, but they still wants Biden to carry out his  loan forgiveness campaign.

"We continue to call on President Biden to take executive action to write off $ 50,000 in student debt, which will help close the racial wealth gap for borrowers and accelerate the recovery of our economy," said the legislators.

Yesterday President Biden announced he was extending the pause of student loan payments for 90 days.

Today would be a great day for a follow-up announcement that he's going to #CancelStudentDebt!

— Chuck Schumer (@SenSchumer) December 23, 2021

Supporters of student loan cancellation agree. Natalia Abrams, president of the Student Debt Crisis Center, said in a statement that the Omicron variant is "a chilling reminder that the pandemic is still a serious concern and that Americans cannot be crushed by student debt as they shoulder this health and economic crisis.

While Biden has pledged during his campaign to approve a $ 10,000 student loan forgiveness, he has yet to deliver on that promise, and some lawmakers have said it could cost  the majority over Democrats in the 2022 midterm election.
Alexandria OcasioCortez of New York  said last month that it was "really illusory" to think Democrats can be re-elected if they don't act on priorities  voters, such as student debt.

 
Vice President Kamala Harris addressed supporters' concerns in a “Face the Nation” interview late last month, he said. must continue to be "vigilant" on the issue, but has not provided for specific means to obtain relief for borrowers.
“Well, I think  we need to keep doing what we're doing and figure out how we can creatively relieve the pressure  students are feeling because of their student loan debt,” Harris said.

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[Christild]

It was obvious that this would end.

[joshbrowne]

To be honest, I did not expect a miracle from Biden. And so it was immediately clear that the state would not forgive student loans. In principle, the initiative was good but, as usual, unfinished. I have not had a student loan for a long time and have already paid it off. However, I will soon have a mortgage that I am going to take. I have excellent credit conditions thanks to Mortgage Advice Leeds, but I would also like my credit to be forgiven. I think so: either everyone or no one. I am not obliged to raise taxes to pay for someone's education.

[Caryn Adams]

While cancelling student debt may seem like an easy solution, the reality is that someone will ultimately have to pay for the cost of education, resulting in a significant increase in taxes. The idea that anything can be free without consequences is a mere socialist dream that does not hold true in practical terms. The promises made by certain politicians to cancel student debt are mere populism.

However, there are alternative ways to manage your student debt, such as seeking advice from financial experts like Mortgage Broker Birmingham. They can provide valuable insights on how the system works and help you find the best possible deal from banks, making it easier for you to pay off your student loans.