President Biden Extends Pause On Federal Student Loan Debt Collection After The The Ministry of Education announced Monday that he would grant debt relief to borrowers with total or permanent disabilities, the White House said on Tuesday.
“We will extend the pause on interest and student loan collections to more than one million borrowers in default of a loan made by a private lender under the old bank-backed loan program.” , known as the Federal Family Education Loans Program. “White House press secretary Jen Psaki said during her daily briefing.
She said it would protect 800,000 borrowers at risk of having their federal tax funds seized.
Psaki also called on Congress to write off $ 10,000 in student debt.
âThis is something that Congress could take action on and he would be happy to sign on. We are always taking a closer look at our student loan options. This includes the authorities’ review, we have, of existing loan cancellation programs that are clearly not working as well as they should, âshe added.
âThis includes borrower defense, total and permanent disability costs, there are a lot of steps that we are looking at and will continue to look at,â Psaki said.
After Education Secretary Miguel Cardona announced on Monday, Senate Majority Leader Chuck Schumer and other Democratic senators renewed their calls for the president to cancel $ 50,000 in student debt .
âSo we have very good news for so many people with student debt, the burden of student debt on their shoulders. â¦ We have taken another good step forward in our progress, âSchumer said at a press conference attended by Senators Elizabeth Warren of Massachusetts and Bob Menendez of New Jersey.
Warren also urged Biden to take action.
âIt’s about moving forward, this is our moment of momentum. We’ve put one more piece in place and we’re now ready for President Biden to sign the piece of paper to say “Write off $ 50,000 in student loan debt,” Warren said.
Cardona’s move would help more than 230,000 borrowers, including 41,000 people who had loans reinstated during the coronavirus pandemic and will be reimbursed for any payments made.
The whole group will not be asked to provide income documents during the duration of the pandemic.
âBorrowers with total and permanent disabilities should focus on their well-being, not putting their health on the line to submit income information during the COVID-19 emergency,â Cardona said in a statement.
“Waiving these requirements will ensure that no totally and permanently disabled borrower is at risk of having to repay their loans simply because they could not submit documents,” he said.