President Joe Biden has just announced that he plans to extend student loan forbearance until the month of September. If everything goes according to plan, borrowers with existing loans can expect to resume payment on October 1, 2021.
President Biden believes that too many Americans are facing economic obstacles and students are having trouble paying back their loans. The thought of having to let borrowers choose between paying their student loan payments or paying for basic necessities especially during the ongoing pandemic, is simply callous.
The student loan extension will affect approximately 40 million federal borrowers who have been protected from payments and interest since the CARES Act was enacted last March. Then-president Donald Trump had taken executive action to allow the CARES Act to continue providing student loan relief until the end of January.
This new directive from Biden calls for an additional extension of paused payments that apply to all borrowers who took out federal student loans. Experts believe that this latest extension will give the administration, the Education Department, and Congress more time to figure out how they can transition millions of borrowers toward repayment successfully.
There is also continuous pressure on the Biden administration to cancel student loan debt altogether by way of executive action. However, President Biden believes he has no authority to do so alone. His advisers also made it clear that the new administration plans to have Congress tackle this issue.
The planned extension of the student loan forbearance is just one of the many executive actions that the Biden administration plans to enact. There are also several other actions related to education that the new president wishes to roll out alongside the loan extension. We will keep you updated on these as well!