Biden Is Waiting Until the Last Minute on Student Loan Pause

Biden Is Waiting Until the Last Minute on Student Loan Pause

Biden Leaves His Supporters Out To Dry

( – When the COVID-19 pandemic hit the United States, many people experienced layoffs or suffered reduced hours as the economy slowed down due to lockdowns. During this time, the Trump Administration put a pause on student loans. When President Joe Biden took office, he extended this break on payments several times. The deadline for the most recent is August 31, and with the end of the month quickly approaching, the lack of action has some people worried.

Recently, according to White House Press Secretary Karine Jean-Pierre, Biden has said he’ll decide whether to extend the pause or apply some form of student loan cancellation before the deadline of August 31 — just under two weeks away. Still, some, including financial heads, are reacting to the anxiety caused by the anticipation.

On July 28, Democrats sent a letter to Biden and Education Secretary Miguel Cardona saying that resuming payments would harm millions of Americans. Republicans disagree, saying only 13% of the population has student loans. But the real crux is the White House staffers who hold these debts, potentially creating a conflict of interest if they encourage the pause or cancelation of loans.

Student loan holders need to know whether they’ll need to begin making payments again next month, and the decision is cutting too close to the deadline for many. Others wonder whether Biden will move to cancel more debt as he promised during his campaign or if that was just an empty promise.

The administration moved to cancel billions of dollars of student loan debt for institutions that defrauded enrollees. The latest came on Tuesday, August 16, when the Department of Education announced it was canceling $4 billion worth of loans for those who attended ITT Technical Institute on false promises.

Do you think Biden should pause or cancel the student loans?

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