President Joe Biden plans to extend the student loan payment pause For 4 Months

The student loan payment freeze could now be extended until August 31, 2022, which is great news for borrowers. Biden is expected to announce his fourth extension of student loan relief. For more than 40 million borrowers soon, according to Politico. (Student debt relief: Biden will determine whether or not to prolong the student loan payment moratorium this month.) The White House has yet to make an official statement, but one is likely to come soon. The student loan payment pause is currently set to end on May 1, 2022. Since March 2020, when Congress approved the Cares Act. Which offered historic student loan relief, and federal student loan payments have been stopped indefinitely. During his presidency, President Donald Trump extended the student loan payment moratorium on two occasions.

The suspension of student loan payments is a significant victory for borrowers

The president has responded to the people’s wishes. Progressive Democrats in Congress and student debt relief supporters have been lobbying President Obama to extend the student loan payment moratorium for months. Senator Elizabeth Warren (D-Massachusetts) has claimed that if Biden does not provide more student loan relief, millions of borrowers may risk default and significant financial hardship. (Student loan payments are on hold because a senator claims that extending student debt relief would be unjust to the majority of Americans.) Others in Congress have expressed concern that the current Covid-19 outbreak, combined with persistent financial instability, could put student loan debtors and their families under even more financial duress.

Borrowers of student loans will save $20 billion

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Student loan borrowers will save $20 billion in student loan payments if Biden announces the four-month extension. (A new plan would prolong the payment moratorium on student loans and cancel student loans.) Why? According to the US Department of Education, this student loan relief saves borrowers $5 billion in interest payments each month. As a result, a fourth-month extension would save $20 billion. As a result of this student loan reduction, borrowers have saved $195 billion since March 2020. Non-payments made during the student loan payment pause will be included toward requirements for student loan forgiveness for federal student loan borrowers who are pursuing income-driven repayment or public service debt forgiveness.

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Shraddha

I am a second-year journalism student from the school of Mass Communication at KIIT Deemed University, Bhubaneswar. Since I'm pursuing journalism, writing and getting published is my dream job. Due to the fact that my subject's studies are based entirely on my research work and sources, I am able to write informative articles. New writers are worried that the story has been told already, well, it has been, but not by you.