White House officials are still considering canceling student loan debt.
Taking time to consider might pause loan repayments again.
How long will the pause last?
Student debt repayment has been on pause since March 2020. Payments are currently set to resume May 1, 2022. White House Chief of Staff Ron Klain reports that President Biden is still thinking about canceling a portion of student debt before repayment begins. The debt would be canceled via executive action. Read more about it here.
Klain said, “The president is going to look at what we should do on student debt before the pause expires, or he’ll extend the pause.”
While Biden was still campaigning, he supported legislation on canceling at least $10,000 in federal loans per borrower. Since Biden took office, there hasn’t been much talk about it.
However, the US Department of Education extinguished $1.7 billion in loan debt. This was done after they revamped the Public Service Loan Forgiveness program in October 2021.
It is still unclear if Biden can cancel student loan debt unilaterally through executive action.
Biden has called on students who have loans to “do their part” too. He encourages students to take advantage of the Department of Education’s resources to help prepare for payments to resume.
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