The administration of Joe Biden will again take some time and extend the payment of a student loan from the Federal Government. This delay is happening as the time proposed is less than what the members of the Democratic Party are demanding.
Student Loan Payment Date Will Be Extended Till August 31
An official from the administration of the White House who is well aware of the decision-making regarding this topic stated that the date of a freeze on the payments will be finally extended till 31st August. These payments would have resumed on 1st May this year after being postponed by the hit of the Covid-19 pandemic.
The extension of the date was an application on approximately 43 million students of America and all of them together owe nearly $1.6 trillion in debt of students which is being retained by the Government. This information came from the current data of the Education Department.
The students who have borrowed money will have to pay after the 31st of August and the interest rate on these payments will be 0%. In the words of Sen. Patty Murray, the students of America need more time to repay their debts and the Government should do something to ease their situation.
She also added that the pressure of repaying the payments of a student loan is destroying many lives and holding them back. This is because, the middle-class people are already struggling with the rising cost of living, increased healthcare costs, and inflation and the broken loan system for the students is another burden for them.
There are some members of Democrats who are pressing Joe Biden to cancel $50,000 from the loan payments of all the students. As per their opinion, this will help the economy and would take some burden off the African-Americans. The halt in the extension of student loans occurred twice in the administration of Trump and then twice under Joe Biden’s administration.
