Posted on 08/06/2021 3:47:51 PM PDT by karpov
The Biden administration on Friday issued what it says will be the final extension to a student loan moratorium that has allowed millions of Americans to put off debt payments during the pandemic.
Under the action, payments on federal student loans will remain paused through Jan. 31, 2022. Interest rates will remain at 0% during that period, and debt collection efforts will be suspended. Those measures have been in place since early in the pandemic but were set to expire Sept. 30.
In announcing the decision, President Joe Biden said the economy is recovering “at a record rate.” But he said the road to recovery will be longer for some Americans, especially those with student loans.
“This will give the Department of Education and borrowers more time and more certainty as they prepare to restart student loan payments,” Biden said in a statement. “It will also ensure a smoother transition that minimizes loan defaults and delinquencies that hurt families and undermine our economic recovery.”
The policy applies to more than 36 million Americans who have student loans that are held by the federal government. Their collective debt totals more than $1.3 trillion, according to the latest Education Department data.
Questions about the moratorium had been swirling in recent weeks as its expiration date approached. Even as the economy improves, there have been concerns that borrowers are not ready to start payments again. Once the moratorium ends, those who were already behind on payments could have wages and benefits taken away as part of debt collection efforts.
Several Democrats, including Senate Majority Leader Chuck Schumer, N.Y., and Sen. Elizabeth Warren, Mass., urged Biden to extend the moratorium through at least March 2022.
(Excerpt) Read more at apnews.com ...
Liens should be placed on all universities who received the loan funds—until all the loans are paid in full.
The taxpayer should not be on the hook for this.
They took on the debt and they should pay it.
Haha the Senile Guy’s handlers yapping about the “recovery” of their lockdown, regulation hollowed-out economy. Yet with such a strong economy they still need debt jubilees for overeducated, underemployed young elites and the serfs who can’t make their monthly rent. Truly re-living a 2020s version of 1970s Soviet Union.
Who pays the interest when students do not?
We do!
President Biden, when will we have a pause for payments on mortgage loans from banks, or on credit card debt? Mr. President? Ms. Psaki?
Precursor to forgiving student loans.
Take it to the bank...NPI.
The Unis need to be the lenders.
Democrats don’t understand the concept of moral risk and how the entire system can unspool and come crashing down when you let things slide like this.
All debts are paid.
Uniparty? If so its just us.
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