President Joe Biden will reportedly extend the 90-day student loan repayment pause through August.
Biden’s announcement of an extended pause may come on Wednesday, the Hill reported. Biden’s original extension was to sunset May 1.
The pause initially occurred to provide workers some relief during the coronavirus pandemic. With the pandemic over, the labor market has recovered. Those with student loans have jobs with which to repay what they legally borrowed and are bound to pay.
In total, the administration has forgiven $12.5 billion of student loan debt for nearly 640,000 students. As of January 31, 2022, “student loan borrowers will have received $110 billion of student loan cancellation from 22 months of temporary student loan forbearance,” Forbes reported.
The suspension of payments has benefitted about 41 million borrowers, according to the White House. Yet the far-left Democrats have called on Biden to continue the extension to prevent the “financial devastation of millions of borrowers.” Those members include radical Democrats, such as Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA).
Despite the generous financial help, the pause in payments must continue for the sake of Democrats’ political aspirations, according to Rep. Ilhan Omar (D-MI).
“Enthusiasm is really low,” Omar said, citing fears Democrats may not turn out to vote Democrat unless the payment pause is extended. “It’s important to listen to the people who have sent us to represent them … and I know that student debt cancellation is a priority.”
Thomas Gokey, an organizer with the Debt Collective, believes if the payment pause is not extended, those living above their means will soon go into default.
“If Biden restarts payments on May Day we know that nearly 8 million people will be pushed into default,” Gokey said. “We don’t need to pause this crisis, we need to end it. Biden can cancel all federal student loans with a signature.”
Last year, Biden ordered the Department of Education to study its authority to totally forgive student debt through executive action. The Department of Education has not publicly released its findings.