Biden could extend student loan payment break beyond August 31
President Joe Biden could extend the student loan payment break beyond August 31.
Here’s what you need to know — and what it means for your student loans.
There could be good news on the horizon for millions of student borrowers, especially those hoping Biden will extend the student loan payment break. According to the Wall Street Journal, the US Department of Education told student loan officials not submit student loan invoices prior to student loan payment ending August 31, 2022.
Student loans: the payment break could be extended
Speculation about a possible extension of the student loan payment break is not new. For example, in June, Education Secretary Miguel Cardona raised the possibility of a fifth extension to Biden’s suspension of student loan payments. During a Senate subcommittee hearing, Cardona had this exchange with Sen. Jean Shaheen (D-NH):
Senator Jean Shaheen: “Unfortunately, over the past year, the [Biden] the administration made three last-minute extensions to the current [student loan] payment moratorium. I’m sure all of these beneficiaries appreciate this, but it doesn’t give them the kind of certainty they really need when planning their lives… So do you have any idea when this current moratorium will take end ? ”
Education Secretary Miguel Cardona: “I don’t have any information to share with you on when this will end or… what the conversations are about, when this is going to be lifted. I know we have a day, and it may be extended or let it start there, but I will say that our borrowers will be notified well in advance and that we will inform you of this as well.
What this means for your student loans
If student loan servicers aren’t sending student loan invoices to student borrowers, it could imply that student borrowers don’t have to make federal student loan payments starting September 1. If true, this could be good news for student borrowers. who have faced months of uncertainty about the future of student loans. Biden has three major student loan deadlines, and he has promised a decision on student loan forgiveness by the end of August (i.e. when the student loan payment break expires) . The White House has denied that Biden has decided to forgive $10,000 in student loans, saying the president has yet to decide. Progressive Democrats want Biden to reconsider $50,000 student loan forgiveness. However, Republicans say Biden has canceled $400 billion in student loans and that extending student loan payments and canceling student loans will only fuel monstrous inflation. Biden has not officially announced whether he will cancel student loans or extend the student loan payment break beyond Aug. 31. Although Biden may provide more student loan relief, your safest bet is to prepare for the restart of student loan payments on September 1. Here are some popular ways to save money on your student loans: