More than 100 Democratic senators and U.S. House members sent a letter to President Biden yesterday urging him to renew the pandemic pause on student loan payments, citing continued economic difficulties for borrowers, the Wall Street Journal reported. In a letter whose signatories span the party’s ideological spectrum, the members asked Biden and Education Secretary Miguel Cardona to extend, for the seventh time, the moratorium on federal student loan payments that is set to expire at the end of August. If Biden doesn’t act, millions of borrowers will have to return to making monthly payments on their student debt that have been frozen since March 2020 just two months ahead of this fall’s midterm elections. The letter was led by Sens. Bob Menendez (D-N.J.) and Cory Booker (D-N.J.), Sen. Elizabeth Warren (D-Mass.), and Senate Majority Leader Chuck Schumer (D-N.Y.). The signatories included moderates like Rep. Conor Lamb (D-Pa.) and progressives like Rep. Rashida Tlaib (D-Mich.). “Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and health care,” the Democratic members wrote. White House press secretary Karine Jean-Pierre on Tuesday pointed to Biden’s comments last week that he would address the issue before the Aug. 31 deadline. “He’ll make a decision,” Jean-Pierre said. “I’ll let him speak.” The Education Department said Tuesday that it would be in touch with borrowers once a decision is made.
President Joe Biden is considering extending a pause on student loan repayments for several more months, as well as forgiving $10,000 in student loan debt per borrower, Bloomberg News reported. The current moratorium on student loan payments expires Aug. 31, and a fresh pause could extend either through the end of 2022 or until next summer. Biden told reporters last week that he hoped to decide on an extension by the end of August. Debt forgiveness may follow the extension, but the president hasn’t reached a final decision on either move, the people said. The president is intent on ensuring any student loan forgiveness doesn’t benefit high-income people, so the administration is likely to cap eligibility somewhere between $125,000 and $150,000 in annual income. Biden has neared a decision on student loan forgiveness at least three times in the last several months, according to one Democrat close to the White House. Yet concerns about escalated inflation have complicated the discussions, preventing Biden and his top aides from moving forward with an announcement.
