President Joe Biden is expected to pause student loan payments through Aug. 31, once again extending the moratorium that has allowed Americans to postpone paying their debts throughout the COVID-19 pandemic, The Hill first reported.
The Biden administration is expected to announce Wednesday another pause on federal student loan payments which will impact roughly 43 million Americans who owe a combined $1.6 trillion in student loan debt, The Hill reported, citing multiple sources. The initial moratorium was scheduled to expire on May 1.
Administration officials have signaled over the last several weeks their plans to extend the pause, with Susan Rice, the president’s domestic policy advisor, a key player in negotiating the terms of the moratorium, Politico reported.
The median income for households making student loan debt payments is more than $86,000. More than 1/3 of this group has a graduate degree.
This pause has cost taxpayers (avg income 50-75k) more than $100 billion.
Student debt forgiveness is a scam to benefit liberal academics. https://t.co/eGUUKyKCw5
— Jim Banks (@RepJimBanks) April 5, 2022
“Since the beginning of the Administration, she has advocated for each pause on the repayment of student loans, including the most recent one,” a White House official told Politico.
Biden has faced growing pressure from nearly 100 Democrats across both chambers to pause the student loan payments, who cited the soaring inflation, according to the Hill. The group of Democrat lawmakers pressing the president to pause payments included Massachusetts Democratic Sen. Elizabeth Warren and Majority Leader Chuck Schumer. (RELATED: How Biden’s Tax Plan Could End Up Raising College Tuition)
“Federal student loan borrowers make up less than 17 percent of the adult population and are disproportionately wealthy, white, and highly educated,” Isabelle Morales, a policy communications specialist with American Tax Reform, told the Daily Caller News Foundation.”By extending the moratorium, the Biden administration will continue funneling $5 billion every month to this privileged class, at the expense of working families.”
Leading economists also warned that extending the moratorium could add further pressure to the inflation crisis, while the Federal Reserve Bank expected the number of delinquencies to surge once the federal relief ended.
The White House did not immediately respond to the Daily Caller News Foundation’s request for comment.
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