White House to extend student loan pause through August

[brooklynite]

Source: Associated Press

WASHINGTON (AP) — 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, according to 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 action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government, according to the latest data from the Education Department. That includes more than 7 million borrowers who have defaulted on student loans, meaning they are at least 270 days late on payments.

Borrowers will not be asked to make payments until after Aug. 31, and interest rates are expected to remain at 0% during that period.

Read more: https://apnews.com/article/student-loan-payment-moratorium-extended-d54907ea99a6745dc9f832435beda751

[maxsolomon]

1. I think I'd make it run through November.

Last edited Tue Apr 5, 2022, 07:55 PM - Edit history (1)

Mid terms coming, and all the Millenials are so disappointed that Biden can't just EO their debt away.

[Steve Canuck]

2. Not sure why this is being pushed off to the side.

Considering it was a campaign promise to forgive a portion of student debt.

[maxsolomon]

3. That is not what he promised. He promised to sign legislation that did it:

Did Biden promise to cancel everyone’s student loans? That’s a popular claim espoused by advocates for wide-scale student loan cancellation. The argument goes like this: Biden, as a presidential candidate, campaigned on student loan forgiveness of up to $10,000 for every borrower. If elected president, some claim that Biden promised to enact wide-scale student loan cancellation. However, one year into the president’s term, there has been no wide-scale student loan forgiveness. Therefore, the claim is that Biden did not keep his campaign promise. Now, some advocates and student loan borrowers want Biden to enact wide-scale student loan cancellation by executive order because they claim he promised to do so. Is this true? Not exactly.

As a presidential candidate, Biden expressed his support for wide-scale student loan cancellation. Other presidential candidates, including Sen. Bernie Sanders (I-VT), Sen. Elizabeth Warren (D-MA) and now Vice President Kamala also supported various forms of student loan forgiveness. For example, Sanders proposed student loan cancellation for all $1.7 trillion of private and federal student loans. Warren proposed cancelling 95% of student loans. As senators, both Sanders and Warren proposed legislation in Congress to support their student loan proposals. Biden championed student loan forgiveness on the campaign trail and on social media. However, Biden wasn’t a U.S. senator when he ran for president in 2020, and therefore did not sponsor legislation in Congress. That said, other legislators proposed a comparable plan to cancel up to $10,000 of student loans for borrowers. Here is one example (among others) of Biden tweeting about student loan forgiveness before the 2020 election:

“Additionally, we should forgive a minimum of $10,000/person of federal student loans, as proposed by Senator Warren and colleagues. Young people and other student debt holders bore the brunt of the last crisis. It shouldn’t happen again.”

In this tweet, Biden is supporting a proposal from Warren. If elected president, Biden is indicating that he would support, and sign, legislation that cancelled $10,000 of student loans for student loan borrowers. This is different than explicitly stating he would use executive authority, if he has such authority, to cancel student loans. As a former senator, Biden understands that Congress passes laws and the president can sign them. Notably, the leading proposal in Congress for student loan cancellation also wouldn’t cancel student loans for every student loan borrower.

https://www.forbes.com/sites/zackfriedman/2022/01/27/no-biden-didnt-promise-to-cancel-everyones-student-loans/?sh=400eacd86929

[Steve Canuck]

7. Turns out it can be done without congress.

[link:http://www.google.com/amp/s/www.forbes.com/sites/markkantrowitz/2022/03/23/biden-can-forgive-student-loans-by-issuing-new-regulations/amp/|

[maxsolomon]

8. But he didn't promise to forgive 10K.

He promised to sign legislation to forgive 10K.

Although fairly esoteric, your link's theories may be workable, but that is not what Biden "promised" to do.

[Steve Canuck]

9. I understand what you're saying

However the average voter likely won't

[maxsolomon]

10. Particularly with Progressive Advocates saying he did.

Let's say he does cancel 10K of debt, or all debt via some existing esoteric rule - it would immediately be taken to court, enjoined by a Trump appointee, and overturned by the 6-3 SCOTUS on the Shadow Docket.

There is precedent; that's already happened with the Covid measures imposed via OSHA regs.

[Steve Canuck]

11. Theres nothing stopping them from trying.

Especially after the dems confirm Jackson to the Supreme court.
The point is trying. If the dems fold at the first hurdle the republican party puts up in front of them, the end result will be getting massacred in the midterms.

[Sienna86]

4. Then before midterms, he announces forgiveness

That’s what I’m assuming.

[maxsolomon]

5. You're not going to see that.

See Post #3.

He does not have the authority to forgive loans across the board. He has forgiven many loans through existing programs.

[Luciferous]

6. I'll take it. I'm hoping to pay mine off by the end of the year and not having more interest tacked

on helps.