Students all over the USA are on the edge of their seats as they await President Joe Biden’s decision on student loan payments. At the moment, the student loan payment in the USA is at a pause. But Biden’s decision can get the federal student loan payment extended.
The federal student loan payment pause in the USA is effective until August 31, 2022. Should President Biden not grant another extension to it, federal student loans are scheduled to restart on September 1. However, sources close to President Biden claim that he is reaching a decision sometime within this week.
Is President Joe Biden extending the federal student loan payment again?
According to the U.S. Department of Education Secretary Miguel Cardona, students can expect to hear the POTUS’ decision sometime this week. But aside from the extension, President Biden is also considering another major decision related to the federal student loan.
Besides extending the pause on federal student loan payments, there is another thing Biden is considering. As of writing, President Biden has canceled over $32 billion USD in student loans for USA.
This pause was put into place at the start of the COVID-19 pandemic. And even though we’re a few years into the pandemic, the pause on the federal student loan payments have been helping most Americans get by without worrying about student loan due dates.
- Since March 2020, there have been no payments collected or required on most federal student loans.
- However, August 31 is fast approaching and that is the day when this pause expires. So students all over the USA are anxiously waiting for a decision from President Biden himself.
President Biden is considering another major decision in terms of student loan payments in the USA
According to multiple reports, a pause is not the only thing President Biden has in mind. CNN reports that White House officials are considering the option to cancel up to $10,000 USD in student loan debt. However, this is only applicable for students belonging to a specific “income threshold”.
- To qualify for the federal student loan payment forgiveness, an individual must earn less than $125,000 USD in a year.
But aside from basing it on yearly income, there is another factor officials are considering.
- Another way to qualify for federal student loan payment forgiveness is by belonging to a specific subset of the general population.
However, there are no details yet about these as it is still being discussed. Nonetheless, students are hoping to hear from President Biden soon before the pause expires.
Student loans and debts are a serious issue in the USA
Even before President Biden arrived in the White House, student debt in the USA are a severe problem. So even if he manages to grant a $10,000 USD cancellation on federal student loans, it is not that significant.
Back when President Biden revealed his plans to aid Americans in paying off their debts, they believe the government is not doing enough. According to a report from CNN, seventy percent of adults not older than 35 years old believe this. This is because most student loans reach around $80,000 USD.
In the meantime, Americans should look for which forgiveness programs they can apply for. On the other hand, those not eligible for any forgiveness program should find the best and cheapest options for them to pay off their student loans.
If you have other questions about the federal student loan payment pause in the USA, feel free to share them in the comments down below. Until then, stay with us here at Spiel Times for more content.