Student loans: Will President Biden extend the payment break?
Lawmakers are pushing President Biden to act on student loans. Some say he should cancel student debt. Others say he should end the loan repayment break.
Tom Santaniello, Ben Briscoe, Megan Allman (WFMY News 2 Digital)
6:26 p.m. EDT March 15, 2022
6:46 p.m. EDT March 15, 2022
GREENSBORO, NC — Tens of thousands of borrowers are now eligible for student loan forgiveness, according to the Department of Education. The total figure is around $6.2 billion.
Want to know if you qualify? Check your mailbox. The Department of Education said it will send letters to those who qualify.
Federal loans total more than $1.6 trillion, according to the Education Data Initiative. The group said more than 40 million Americans have student loans.
Federal student loan repayments have been suspended since March 2020. President Donald Trump has extended the pause twice. President Joe Biden has done it three times.
Student debt affects so many people that some lawmakers are suggesting canceling student debt.
Senate Majority Leader Chuck Schumer (D-NY) recently tweeted his support for the measure.
Some lawmakers across the aisle think that’s a bad idea. They even introduced a bill that would prevent the president from extending the current student loan payment break.
The “Federal Student Loan Integrity Act” would also remove the Secretary of Education’s power to suspend interest accrual while loan payments are suspended.
A Grinnell College poll found that 66% of Americans support student loan forgiveness.
As lawmakers debate the future of the federal student loan pause, millions are having to decide whether to start paying now or wait. Money expert Ja’Net Adams said borrowers should this time wisely.
“Actually, start saving money now,” Adams said. “Put it in a separate savings account, so when those bills start coming in, it won’t feel overwhelming or be a financial stress on your life.”
The rising cost of higher education has forced people to make a difficult decision; Is going to college worth going into debt?
A report from Georgetown University delved into this question. He found that people with a bachelor’s degree earned $1.2 million more over their lifetime than people without a degree.
However, salaries may vary. The report found that it was possible for a less educated person to earn more money based on their career.
At this time, there is no timeline on when action might be taken regarding federal student loans.