DeVos is extending the student loan break until January


Democrats, unions, and consumer groups have called on the Trump administration in recent weeks to extend all of these benefits to borrowers amid a worsening pandemic, and because negotiations on further coronavirus aid have stalled. But the Department of Education and White House moms were wondering if they would give another respite to student borrowers in the final weeks of Donald Trump’s presidency.

POLITICO reported earlier this week that the department had ordered federal student loan providers to withhold borrowers with early warning that the government would not start collecting payments on January 1st.

Even when Secretary of State for Education Betsy DeVos took implementing measures to extend benefits, he said it was up to Congress, not the executive, to decide on federal student loans.

“The coronavirus epidemic has been a challenge for many students and borrowers, and this temporary payment break will help those affected,” DeVos said in a statement. “The added time will allow Congress to do its job and determine what measures are necessary and appropriate. Congress, not the executive branch, is responsible for student loan policy. “

Biden has not taken any specific enforcement action on student loans, but is widely expected to continue some form of the same freeze on monthly payments and interest, which the Trump administration has now twice extended with an enforcement action.

Congress has been debating for months whether student loan relief should be extended, but Democrats and Republicans have disagreed on how and how this should be done.

The corona virus clearance bill passed in May will freeze student loan payments until September 30 of the following year, and the interest rate will remain at 0 percent for the same period or even longer unless the unemployment rate improves.

A $ 908 billion bipartisan proposal unveiled this week by a group of centrist senators included approximately $ 4 billion to continue some form of student loan relief, potentially until March next year, though the details were not affected. But Senate Republicans were cooler than the idea.

Senate Majority Leader Mitch McConnell’s latest corona virus elimination plan does not include an extension of student loan benefits.

Biden also faces pressure from progressive Democrats to go further and use enforcement measures to use it to write off hundreds of billions of dollars in outstanding student loan debt.

Elizabeth Elizabeth Warren (D-Mass.) And Chuck Schumer again on Friday released a publication calling on Biden to forgive a large amount of student loan debt, which they say would boost the economy and reduce racial wealth disparities in the United States.

Biden supported the cancellation of $ 10,000 in debt per idea as a pandemic relief measure along the campaign’s trail. But he did not undertake to do so through executive action, as opposed to a request from Congress to clarify clear legislation to that effect.