Concerned about your federal student loan repayments? Well, you can breathe easy today–and for the next four months. On Wednesday, President Joe Biden announced his administration’s decision to extend the repayment of loans. The president shared a short clip with the public though his verified social channels.
“Today I am announcing my administration extending the pause on federal student loan repayments through August 31 of 2022,” President Biden said. “I know folks were hit hard by this pandemic and though we’ve come a long way in the last year, we’re still recovering from the economic crisis it caused.”
According to CNN, the pause would’ve expired on May 1. Most borrowers with federal student loan debt haven’t had to worry about shelling out coins for repayments in the last two years. The freeze, which prevents interests from adding up and collections on the debt, has been in place since March 2020.
This is the third time Biden has extended the payment restart date. Biden’s administration previously said the September 2021 to January 2022 extension would be the final one. However, a surge in COVID-19 cases warranted an extension through May 1.
“This continued pause will help Americans breathe a little easier as we recover and we rebuild from the pandemic,” President Biden said on Wednesday.
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Just Cancel ‘Em Joe
And while some people are relieved by the extension, others are calling for Biden to cancel the debt entirely. Ironically, just hours before Biden’s extension announcement, U.S. Senator Bernie Sanders, as he has in the past, advocated for cancellation. He tweeted, “cancel student debt” and continued with “all of it.”
Though Biden’s presidential campaign showed favor to cancellation, the president has been urging Congress to make the decision rather than using his executive power. However, there’s been some progress on the subject. President Biden has expanded forgiveness programs for Americans with severe disabilities, employees in the public sector and borrowers defrauded by for-profit colleges.
Per the Federal Reserve, Americans owe more in the student loans than credit cards or car loans. In fact, recent data shows Americans are $1.8 trillion in the hole when it comes to student loans–an increasing number since 2006. According to CNN, about 43 million people have student debt, which means nearly 17 percent of adult Americans owe some educational coins.
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