Biden plans to restart federal student loan payments in February

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President Joe Biden still plans to restart payments of federal student loans in February, resisting pressure from some Democratic lawmakers who continue to call for an extension of student loan benefits. relief from the coronavirus pandemic .

“We are still evaluating the impact of the Omicron variant, but a smooth transition back to payment is a high priority for the administration,” said the White House press secretary, Jen Psaki , when asked if the administration would consider extending the student loan payment pause.

“In the coming weeks, we will release more details about our plan and communicate directly with student loan borrowers to make sure they have the resources they need and are in the plan appropriate payment, ”added Psaki during a press conference at the White House.

Borrower balances have been effectively frozen for nearly two years, with no payments required on most federal student loans since March 2020.

During this time, the interests stopped accruing and the collections of the delinquent debt were kept on hold, because the Law of Aid, Relief and Economic Security for the Coronavirus, or CARES Act, suspended federal student loan payments and interest , to help people, due to the coronavirus pandemic.

The relief of student loan payments related to the pandemic was due to end on 30 September 2021, but Biden authorized to extend the moratorium for another four months, until 31 of January of 2022.

Pressure to extend payment relief

Senate Majority Leader, Chuck Schumer , New Senator Elizabeth Warren and the representative e Ayanna Pressley , both from Massachusetts, have been pressuring Biden to extend the student loans.

“The pause in payments, interest and charges on federal student loans has improved the financial security of borrowers, allowing them to invest in their families, save for emergencies and pay other debts, “wrote those legislators in a letter to the president last week, according to CNN.

Before After the hiatus, borrowers were paying an average of $ 393 dollars a month for their federal student loans, according to a Roosevelt Institute analysis, given to Schumer and Warren at their request.

That means that together, borrowers will pay approximately $ 7 billion a month, or about $ 85 billion a year, once payments resume.

Schumer, Warren and Pressley also continue to urge Biden to take more economic relief measures and cancel up to $ 50, 000 dollars of student loan debt per borrower.

Psaki said Tuesday that the executive authority regarding student loan forgiveness is still under review and added that the president supports congressional action on the matter .

“If Congress sends him a bill, he’ll be happy to sign it. They haven’t sent him a bill on that yet, ”he said.

Borrowers of these federal loans will receive a statement or other notice at least 21 days before the due date of your payment, according to the Department of Education. Those who had set up automatic payments may need to notify their loan servicing company that they want them to continue.

If borrowers of federal student loans can no longer pay their monthly payment , they may be eligible for a payment plan determined by income. Under those plans, which are based on income and family size, a monthly payment can be as low as $ 0 a month.

The Department of Education has more information online about the repayment of federal student loans here.

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