Student Loan debt hasn’t been cancelled just yet, but the Biden Administration is giving college graduates a break through the summer.
The decision impacts 43 million Americans who owe a projected $1.6 trillion in federal student debt, per data from the Education Department. It comes as repayments were expected to resume on May 1, and as Democrats in Congress are requesting that the Biden administration gives Americans more time to prepare for the payments resuming. Interest rates are expected to remain at 0% until Aug. 31, as well.
Some politicians, like Sen. Patty Murray, argue that the government’s current repayment process is “ruining lives and holding people back,” and that Americans need some extra time.
“Borrowers are struggling with rising costs, struggling to get their feet back under them after public health and economic crises, and struggling with a broken student loan system — and all this is felt especially hard by borrowers of color,” Murray said.
As for if debt forgiveness is on the horizon from the Biden White House, lawmakers like Chuck Schumer and Elizabeth Warren have pushed the president to cancel $50,000 per student loan recipient. Biden asked the Education and Justice departments last year to review the legalities of widespread forgiveness, and previously explained that he supports $10,000 of forgiveness but put the responsibility on congress to do so.
They need to go ahead and just cancel that debt.