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Extend The Student Loan Payment Pause, 100 Lawmakers Tell Biden

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Extend The Student Loan Payment Pause, 100 Lawmakers Tell Biden

More than 100 members of Congress have urged President Joe Biden to extend the moratorium on student loan payments beyond August 31, 2022.

Here’s what you need to know — and what it means for your student loans.

Student Loans

U.S. Senators Bob Menendez (D-NJ), Cory Booker (D-NJ), Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY) and Representatives Lauren Underwood (D-IL), Tony Cárdenas (D-CA) and Ayanna Pressley (D-MA) led a bicameral group of lawmakers lobbying Biden to extend the student loan moratorium for the fifth time. The effort to persuade Biden comes as three important deadlines for student loans approach. In their letter to Biden, the lawmakers wrote:

They worry that Biden could restart student loan payments for tens of millions of student loan borrowers on September 1, 2022; student loan payment suspension “helps many borrowers during the pandemic that killed more than 1 million in the U.S. maintain shelter, secure child care, and buy food, health care, and medicine”; economic uncertainty, rising Covid-19 hospitalizations, and rising food and gas prices are putting additional financial stress on student loan borrowers; Restarting student loan payments now will create confusion for student loan borrowers; student loan borrowers eagerly await more information on student loan cancellations, limited waivers of student loan forgiveness, and other major changes to student loans.

While lawmakers want Biden to extend the moratorium on student loan payments, they did not mention how long the moratorium should be extended. Earlier this month, 180 groups urged Biden to extend the moratorium on student loan payments until all borrowers canceled their student loans.

What this means for your student loans

Biden has confirmed that he will announce his decision on student loan forgiveness and student loan payment suspensions by Aug. 31. Importantly, there is no guarantee that Biden will extend the moratorium on student loan payments. Biden has previously extended the student loan moratorium four times, and President Donald Trump extended it twice after Congress passed the CARES Act in March 2020. The U.S. Department of Education has instructed student loan servicers not to send student loan bills to borrowers, adding to speculation that Biden could extend the suspension of student loan payments beyond Aug. 31. Biden faces intense political pressure from Democrats and Republicans to suspend student loan payments. A majority of Democrats want it extended, while a majority of Republicans want the moratorium on student loan payments to end. If the President does not act, the student loan moratorium will automatically expire on August 31, and federal student loan payments will restart on September 1, 2022. Start planning for this potential situation now. Learn about all your options for repaying your student loans. Here are some popular ways to save on student loan fees:

Student Loans: Related Reading

Student Loan Cancellation: Congress Proposes 0% Interest Rate on Student Loans

Student Loans: Red, White and Blue

Senators propose big changes to student loan forgiveness

Department of Education cancels $6 billion in student loans

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