Biden delays, but not cancels, student debt — Analysis
After Democrats called for the cancellation of some, or all, the $1.5 Trillion in student loans, Joe Biden from the United States announced that the White House would increase the repayment moratorium by three months.
Biden said Wednesday in a statement that the US was experiencing an economic recovery “one of the strongest ever,”But that’s not all “millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments.”
As part of the CARES Act, payments on federal student loans were initially suspended in March 2020. Trump extended the moratorium until January 2021. Biden extended the moratorium twice more, once in January and again in August. On Wednesday, the moratorium had been extended until May 1, 2022.
The Department of Education “continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation,”According to the White House,
An estimated 43 million Americans have student loan debts to the federal government totaling more than $1.57 billion. That’s an average of $39.351 per borrower. Compound interest has been accruing on these loans. In the past year, only one percent of the debtors reportedly paid their loans.
A number of prominent Democrat lawmakers, from Senate Majority Leader Chuck Schumer (D-New York) to progressive ‘Squad’ leader Rep. Alexandria Ocasio-Cortez (D-New York), have called on Biden to cancel student debt outright. Biden acknowledged that the issue is a matter of concern to both himself and Kamala Harris, but he did not say if it was. “care deeply about,” he has made no move to do so.
“I’m asking all student loan borrowers to do their part as well,”He suggested that they should work together with the Education Department on Wednesday “prepare for payments to resume,”You might consider working as a government employee to obtain the forgiveness of your loans. “make sure you are vaccinated and boosted when eligible.”