A group of Democratic lawmakers has urged President Joe Biden to extend the federal student loan payment break before it expires on August 31.
Meaning. Bob Menendez, DN.J., Cory Booker, DN.J., Elizabeth Warren, D-Mass., and Chuck Schumer, DN.Y., and Reps. Lauren Underwood, D-Ill., Tony Cárdenas, D-Calif ., and Ayanna Pressley, D-Mass., said they, along with 100 other lawmakers, sent a letter to the Biden administration and the Department of Education last week arguing for another extension, according to a statement. Press.
“For more than two years, the department has provided essential flexibility to millions of federal student loan borrowers by suspending payments as many struggled during the COVID-19 pandemic,” the lawmakers wrote in the letter. “This much-needed break has helped many borrowers keep a roof over their heads, provide childcare and buy food, healthcare and medicine during a pandemic that is responsible for the death of more than a million people in the United States.
“For the first time, many borrowers have had the opportunity to pay down their debts, open a savings account, buy a home and save for their retirement – none of this would have been possible without payment break,” they continued.
Federal student loans are currently on COVID-related forbearance and payments have been suspended until August 31. During this period, borrowers are not required to make payments on their loans and interest rates have been set at 0%. The Ministry of Education also halted collections on delinquent loans during this period.
If you have private student loans that aren’t eligible for the payment break, you can always try to lower your monthly payments by refinancing. Visit Credible to find your personalized interest rate without affecting your credit score.
BIDEN CONFIRMS THAT HE WILL MAKE DECISION ON STUDENT LOANS BY END OF AUGUST
Lawmakers say resuming payments would create financial hardship
In the letter, the lawmakers said that if Biden does not extend the pause and borrowers have to resume their monthly student loan payments, it will force them to choose between paying those loans or other bills such as their rent or mortgage. , food, child care or health care.
It comes as inflation hit a new 40-year high in June. The consumer price index (CPI) rose 9.1% annually, reaching its highest level since November 1981, according to the Bureau of Labor Statistics (BLS).
“Despite significant declines over the past month, gasoline prices are still high and many borrowers still have to pay exorbitant sums each week to get to work,” the lawmakers said. “Food prices remain high as suppliers grapple with supply chain issues and the war in Ukraine. We still have a major child care crisis across the country, which has driven already high costs to 40% of pre-pandemic levels.
“Low-income borrowers, black and brown borrowers, and women borrowers continue to face severe financial hardship as COVID-19 continues to infect individuals across the country and exacerbate existing inequalities,” they said. they continued.
If you’re struggling with rising costs, refinancing your private student loans could help lower your monthly payments. Visit Credible to compare multiple student lenders at once and choose the one with the best interest rate for you.
THE BILL TO ACCELERATE STUDENT DEBT REMISSION THROUGH THE PSLF UNVEILED BY HOUSE DEMS
Biden mulls extending suspension of payments and canceling student debt
Speaking to reporters on Air Force One last month, Biden confirmed he would make a decision on student debt by the end of August. However, it was unclear which decision the president was referring to. Earlier comments from the White House and the Department of Education have opened up the possibility of widespread student debt forgiveness and/or an extension of the current suspension of student loan payments.
Biden has previously said he is considering canceling some student debt, but has not yet given an official decision on when or how much. He, however, said he would not cancel the $50,000 student loan debt some Democrats are asking for.
“I’m looking at facing some debt reduction,” Biden told reporters at the White House in May. “I am not considering a $50,000 debt relief. I am in the process of looking closely at whether or not there will be additional debt relief and will have a response on that within the next few weeks. “
If you have private student loans, you will not receive another suspension of payment extension or student loan forgiveness. However, you can lower your monthly payments by refinancing to lower your interest rate. To see if this is the right option for you, contact Credible to speak with a student loan expert and get all your questions answered.
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