Another huge sign Biden could extend student loan payment break

There is another huge sign that President Joe Biden could extend the student loan payment break.

Here’s what you need to know.

Student loans

Just when you thought this would be the last extension of student loan relief, now there’s another sign that student loan payments may not restart after May 1, 2022. Yes, Biden can extend again student loan payment break. Although Biden did not make an official announcement, Policy reports that behind-the-scenes action by the US Department of Education sheds light on what the Biden administration could do next.

Student Loan Payment Pause May Be Extended: Here’s Why

The U.S. Department of Education has reportedly asked Federal Student Loan Services — the companies that handle student loan repayments — to stop send notices to student borrowers regarding the restart of student loan repayments. (6 major changes to student loan relief). Previously, the Department of Education notified student loan borrowers of the restart of federal student loan payments after May 1, 2022. If that process has now stopped, it’s a huge indication that Biden could extend the pause. student loan payments for an unprecedented fourth time. . Federal student loan payments have been suspended since March 2020. This means student loan borrowers have not made any federal student loan payments since Biden was president. In total, student borrowers saved $5 billion per month during the Covid-19 pandemic. This saved over $120 billion on their student loans.

Biden to Forgive $6.2 Billion in Student Loans

Biden has forgiven more than $15 billion in student loans since becoming president. The US Department of Education announced yesterday that an additional 100,000 student borrowers are now eligible for student loan forgiveness due to the Biden administration’s changes to the Civil Service Loan Forgiveness Program in October. These student borrowers will get $6.2 billion in student loan forgiveness. This is another big win for student borrowers when it comes to student loan forgiveness. The Department of Education expects another 450,000 student borrowers to get student loan forgiveness following changes to student loan forgiveness that loosen the rules. Specifically, borrowers can file a limited waiver for student loan cancellation with the U.S. Department of Education. This limited waiver will allow them to count past student loan repayments that have been deemed ineligible for student loan forgiveness. For example, this includes late student loan payments, partial student loan payments, and student loan payments made under the wrong student loan repayment plan.

White House Chief of Staff Ron Klain said in a podcast last week that Biden may consider other options for student loan relief. That could include large-scale student loan cancellations, which Biden has previously said he doesn’t believe he has the executive power to enact. Biden has focused on targeted student loan forgiveness, but he’s called on Congress to pass legislation on $10,000 in student loan forgiveness for borrowers. Progressive Democrats have argued that student borrowers are not ready to restart student loan repayments given the state of the economy and the Covid-19 pandemic. (4 Reasons Congress Didn’t Cancel Your Student Loans). They believe large-scale student loan cancellation will boost the economy, reduce disparities and help borrowers gain greater financial freedom. Congressional Republicans have criticized further extensions to student loan relief, saying it’s an unfair redistribution of wealth that hurts Americans who haven’t gone to college or don’t have student loans.

For now, student loan repayments will resume after May 1, 2022. Most importantly, prepare as if there is no extended payment pause. Learn all the best strategies for student loan repayment.

Here are some smart ways to save money and pay off your student loans:

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