LIVE STREAMING
Activists protest for student loan cancellation outside of the White House. Photo credit: Paul Morigi/Getty Images
Activists protest for student loan cancellation outside of the White House. Photo credit: Paul Morigi/Getty Images

The student loan moratorium has been extended until May

The moratorium, which was scheduled to end in January, originally went into effect in March 2020 and has been extended three times.

MORE IN THIS SECTION

Latin America's Tour

September 30th, 2022

More Rights For Cubans

September 29th, 2022

Newsom signs UFW law

September 29th, 2022

U.S. Waives Jones Act

September 29th, 2022

Pierluisi joins Jones call

September 28th, 2022

Latinas talk Abortion in TX

September 28th, 2022

Run Away Ken

September 28th, 2022

Ian heads to Florida

September 27th, 2022

SHARE THIS CONTENT:

The Biden administration has decided to once again extend the moratorium on student loans, this time through May 1, 2022, citing the lingering effects of the pandemic on borrowers. It was set to expire on January 31.

This extension comes as the Omicron variant is spreading rapidly throughout the U.S. 

In his statement, Biden calls on borrowers to work with the Department of Education to get ready for payments to start up again. This suggests that this may be the last extension. 

According to the U.S. Department of Education, the paused payments are saving 41 million borrowers an estimated $5 billion a month.

Opinions on what to do about student loans vary. Lawmakers like Senators Chuck Schumer, Elizabeth Warren, and Ayanna Pressley have called on the President to cancel $50,000 in loans per person. Biden has said that he supports canceling $10,000 per person, but wants Congress to pass a bill on the matter since it is unclear if he has the authority to do it himself. 

CNBC Make It contacted 500 lawmakers for their opinions on student loan forgiveness in April. Of the 66 who responded, 37 Democrats supported the $50,000 cancellation, and an additional 6 supported $10,000. Ten of the Republicans who responded don’t support a fixed rate for forgiveness.

Other lawmakers have different plans. California Congressman Eric Swalwell introduced the No Student Loan Interest Act in July 2021. This bill would eliminate interest on new and existing loans, as well as lower the interest rate to zero. Meanwhile, Representative Alexandria Ocasio-Cortez is pushing for cancellation.

On social media, opinions are also mixed. There are those who have paid off their debt and think everyone else should do the same. There are also those who are calling for student loans to be forgiven entirely. 

  • LEAVE A COMMENT:

  • Join the discussion! Leave a comment.

  • or
  • REGISTER
  • to comment.
  • LEAVE A COMMENT:

  • Join the discussion! Leave a comment.

  • or
  • REGISTER
  • to comment.
00:00 / 00:00
Ads destiny link