Loan payment

180 organizations press Biden to extend student loan payment suspension

A group of 180 national and state organizations urged President Biden to extend the student loan payment break, which is due to expire in just under two months on August 31, in a June 30 letter.

The payment pause, which was first enacted in March 2020 and has since been extended several times, has prevented millions of federal student loan borrowers from making loan payments during the pandemic. Biden has said he plans to cancel at least some student debt, but he has yet to unveil a final proposal.

Biden is expected to forgive at least $10,000 of student debt per borrower, capped at people earning less than $150,000, by the end of the summer. The administration has not yet hinted at whether there will be another extension of the payment pause, but many pro-debt forgiveness organizations argue that the forgiveness must come before repayment begins in August if the break is not extended.

“Our organizations urge you to adopt robust student debt cancellation that is not means-tested or require an opt-in for participation and to fully implement this policy before the expiry of any student loan bill,” the letter read.

The letter continued: “Our organizations enthusiastically support broad student debt cancellation, as it would bring desperately needed relief to millions of people and, in doing so, strengthen the economy and our nation. We also understand that in a time of extremely high inflation, when even necessities are becoming out of reach for many families, student debt relief would ease the financial strain that so many Americans feel.