Loan payment

North Carolina Republicans want student loan payment suspension to end

The federal loan moratorium in place since the start of the coronavirus pandemic is set to end in a few months.

What do you want to know

The federal student loan moratorium has been in place for more than two years

Legislation would end the hiatus

The legislation would also limit the president’s powers to unilaterally write off student debt.

Legislation unlikely to pass as Democrats control Congress

As COVID-19 restrictions ease and Americans return to their offices, some Republican lawmakers believe the break should end even sooner.

“They have to start paying back their loans, like they signed on the dotted line, their obligation,” North Carolina Republican Rep. Greg Murphy said.

Murphy co-introduced legislation last month that would end the student loan payment pause.

“It should have ended over a year ago when people were starting to go back to work,” Murphy said.

A new report from the Board of Governors of the Federal Reserve reveals that almost 60% of borrowers made no payments during the period studied.

Jaylon Herbin works on student loan policy for the Center for Responsible Lending and said some borrowers aren’t ready to resume payments.

“More people will go back to default because they’re not ready to take on that extra payment,” Herbin said.

President Joe Biden is considering permanently canceling some student loans, but there is disagreement over how much he should eliminate and whether he has the authority to do so.

Murphy’s legislation, which is unlikely to pass because Democrats control Congress, would limit the president’s ability to unilaterally write off student debt.

“I don’t think it’s constitutional, I don’t think it’s the right thing to do, but if he tries, we’ll try to prevent it from happening anyway,” Murphy said. “The forgiven debt is then passed on to people who have never had debt or never gone to college, who are taxpayers.”

Murphy said colleges and universities should play a part in the student debt crisis by forgiving some loans and lowering their tuition fees.

Herbin, who has $60,000 in student debt, hopes Biden decides to wipe out at least $50,000 in student debt. He said it would allow him to focus on other things in life.

“Being able to buy a house…just being able to have more freedom and flexibility in our day-to-day lives,” Herbin said.