Student loan repayments resume in ten days unless President Joe Biden announces further relief. His education secretary again said a decision would come first, but did not say what it would be.
On Sunday, Education Secretary Miguel Cardona appeared on NBC’s Meet the Press and was asked if another extension to the student loan payment pause was coming, along with permanent relief like the debt cancellation. Student loan payments have been suspended for more than two years, but are now expected to resume after Aug. 31 in just ten days if Biden does not announce another extension, leaving millions of federal borrowers unable to plan. financially.
“From day one, we’ve been really focused on protecting our students and our borrowers…” Cardona told Meet the Press. “We know that August 31 is a date when a lot of people are waiting to hear something. We talk about it daily and I can tell you that the American people will hear by next week what the Department of Education will do around. this.”
When asked if borrowers could confirm the relief would be “nothing,” Cardona replied that he “has no news to report today, but I will tell you that Americans will hear directly from us. because we recognize that this is an important issue across the country. »
Last week, Cardona told CBS News that borrowers will “soon” know if the payment break will be extended, and in June he told lawmakers that borrowers would be given “adequate notice” on any odds of their balances. debts, but with just over a week before payments resume, time is running out. As Insider previously reported, these are the millions of federal borrowers closest to restarting payments without an update from Biden, and the lack of guidance puts borrowers and the companies that service student loans in deadlock.
Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group that represents federal loan officers, told CNN over the weekend that “waiting to see hypothetically what the government might or might not do is not is probably not a good personal financial decision”.
“If we have all this confusion before the resumption on September 1, talk to your repairer now to understand what reimbursement plans are available to you, enter this reimbursement plan today, update your contact details with the repairer so that we can get in touch with you…that’s the most important thing people can do,” Buchanan said. “It’s very important that you don’t wait for hopes that the government may or may not do something in the future.”
But after pledging to approve student loan forgiveness on the campaign trail, many Democratic lawmakers, borrowers and advocates expect Biden to act on the issue. Biden is reportedly considering a $10,000 loan forgiveness for borrowers earning less than $150,000 a year, and while Republicans don’t want to see broad relief at all, Democrats want him to provide it.
In late July, 107 Democratic lawmakers wrote to Biden urging him to extend the payment break, and beyond that, many urged him to exceed $10,000 in debt forgiveness. Massachusetts Sen. Elizabeth Warren continues to seek $50,000 in relief, an amount the president said in May he was not considering and others, like Sen. Bernie Sanders, want the whole debt crisis $1.7 trillion student be wiped out.
“In Congress, they’re busy doling out massive amounts of welfare to big business,” Sanders said. wrote on Twitter over the weekend. “Well, I think now is the time to tell 45 million Americans that we are canceling all of their student debt.”