The Biden administration will not be extending student loan relief and confirmed student loan payments restart February 1, 2022.
Progressive members of Congress, leading advocacy groups and student loan borrowers have lobbied President Joe Biden to extend the student loan payment pause beyond January 31, 2022. (Here’s a list of everyone who wants Biden to extend student loan relief). They cite potential financial devastation for millions of borrowers if temporary student loan forbearance isn’t extended. Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) say that 89% of student loan borrowers feel financially unprepared to restart student loan payments. They also argue that nine million student loan borrowers in default will suffer further financial detriment. (5 ways Biden could cancel more student loans). With other U.S. senators, they have pressured Biden to postpone the return to student loan payments for at least several months and at most until the end of the Covid-19 health emergency. Despite these pleas, the Biden administration seems definitively focuses on ending this student loan relief on January 31.
Student loan cancellation won’t happen either
Some student loan borrowers have hoped that Biden will deliver a last-minute financial lifeline by enacting wide-scale student loan cancellation. (Here’s how to get student loan forgiveness during the Biden administration). However, there is no indication that Biden will cancel everyone’s student loans. Therefore, don’t expect Biden to cancel student loans before student loan relief ends. On the contrary, Psaki provided an update on Biden’s actions to date to enact student loan forgiveness. Since becoming president, Biden has cancelled $12.5 billion of student loan debt for approximately 640,000 student loan borrowers. When questioned by a reporter about the Biden administration’s plans to help student loan borrowers, Psaki made no mention of any future plans for wide-scale student loan forgiveness. (How to qualify for automatic student loan forgiveness). Psaki’s posture has been consistent with Biden’s in that the president supports wide-scale student loan cancellation of up to $10,000, but Congress should pass legislation on mass student loan forgiveness.