Biden Extends Moratorium On Federal Student Loan Payments

With economic factors in flux due, in part, to the omicron variant, the Biden administration has extended the moratorium on federal student loan payments through May 1.

The moratorium doesn’t apply to privately held student loans.

From NBC News:

In a statement, President Joe Biden said that “millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments.”

The White House for months maintained that Biden would not extend the pause beyond the Jan. 31 deadline, warning borrowers that they should be prepared to resume payments in February even as Covid case numbers increased and as inflation concerns gripped the country.

Biden has said that he does not believe he has the authority to cancel student debt unilaterally but that he would support Congress’ passing a bill to cancel $10,000 in debt for each borrower.

The debate on federal student loans has raged for years. On one hand, you have students who say they were ‘duped’ with promises of good paying jobs if they got a college degree. And now they are ‘saddled’ with debt.

On the other side, there are folks who say if you knowingly took out the loan, you should repay it.

One suggestion has been to erase the interest on federal student loans and have the recipients just pay back the principal.

Read the full report here.

Related: President Obama Helps College Students