The President has extended the existing free on student loan repayments for another 3 months. In effect, it stands extended up to May 1 next year. He had earlier called for the cancellation of $10,000 maximum per loan borrower, and also tuition-free colleges among other proposals.
The Biden administration made the announcement even as the loan payments are on hold right after the pandemic was declared in March 2020. This new extension allows borrowers the cushion of an additional 3 months of student loan relief.
Before the announcement on Wednesday of the extension, student loan payments were slated to recommence after the end of January. A press release from the President cited the challenges linked to the pandemic that students are facing as the reason behind the move.
President Biden Has Also Advised Students To Be Ready For Student Loan Repayment By May
The president has also advised borrowers to initiate preparation for May when payments resume. Biden said that he expected all students to play their part and take total benefit of the resources of the education department. He advised them to look at ways to lower their debt through various repayment plans and explore various public service student loan waiver means. The President also advised the student to stay vaccinated and safe and be ready when they are eligible.
Experts have opined that total student loan release is a remote possibility. They have said that students need to start planning and be ready to start repaying by May. They cautioned that students should not plan around the possibility of student loan forgiveness.
President Biden has put forward various measures that include both legislative measures and executive authority. Senator Warren and Chuck Schumer, the Senate Democratic Leader, have both pointed out that the President has the executive power to go for loan forgiveness, others have said that legislative changes are necessary to push through several of the measures.
President has also supported free tuition for deserving undergraduate students with family incomes below $125,000. This plan would apply to 2 and 4-year public colleges. The plans for repayment of student loans may also turn more generous.