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The Biden administration announced on Friday that it would extend the payment break for federal student loan borrowers until January 2022.
As of March 2020, borrowers have the option of pressing the pause button on their monthly bills, with no accrued interest on their debt. About 90% of borrowers have done so. The break was due to expire next month.
President Joe Biden has come under pressure from Democrats and his supporters to give the 42 million Americans in debt more time.
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The White House has said it will be the latest expansion.
More than 66% of borrowers said they were not ready to restart their payments, according to a recent survey conducted for The Pew Charitable Trusts.
“We are delighted that the Biden administration has heeded our call to extend the break on federally-held student loan payments, offering enormous relief to millions of borrowers facing a dire financial cliff,” said the Minority Leader Senator Chuck Schumer, DN.Y .; Senator Elizabeth Warren, D-Mass; and Rep. Ayanna Pressley, D-Mass., said in a joint statement.
Lawmakers also continued to pressure Biden to write off up to $ 50,000 in student debt for all borrowers.
“While this temporary relief is welcome, it doesn’t go far enough,” they wrote. “We look forward to hearing the administration’s next steps in dealing with the student debt crisis.
Biden called on the US Department of Justice and the US Department of Education to review his legal authority to write off student debt. The decisions of these agencies are not yet public.
Borrowers were in trouble before Covid. The stock of student debt in the United States has exceeded $ 1.7 trillion and weighs more on Americans than credit card and car debt. About a third of borrowers are in default or in default.
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