As my colleague wrote in Slack, Thank you philippe. The Biden administration announced on Friday that it to deploy themselves student debt relief until the end of January.
This action is a reprieve for the 42.9 million people—About one in seven US residents — who currently have federal student debt. Federal student loan payments and interest have been suspended since the passage of the CARES Act in March 2020—Such as collection actions for delinquent loans and negative credit reports related to student loan repayments. Student debt relief linked to the pandemic was due to expire next month, September 30. Now that deadline has been extended to January 31, 2022. (The Washington post has a practical Guide for what to do when debt relief expires.)
In one declarationEducation Secretary Miguel Cardona called it a “final extension”. “The payment hiatus has been a lifeline that has allowed millions of Americans to focus on their families, health and finances instead of student loans during the national emergency,” Cardona said. “As our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment.”
Several prominent Democrats are asking for more. “The payment break has saved the average borrower hundreds of dollars a month, allowing them to invest in their future and support their family,” said Senator Elizabeth Warren (D-Mass .), Senate Majority Leader Chuck Schumer (DN.Y.), and Rep. Ayanna Pressley (D-Mass.) said in a joint statement after the extension was announced. “While this temporary relief is welcome, it doesn’t go far enough. Our broken student loan system continues to exacerbate racial wealth gaps and dampen our entire economy. We continue to call on the administration to use its current executive power to write off $ 50,000 in student debt. “