Student loans: how long will loan repayments be suspended?
Oaround 43 million people in the United States owe a total of $1.7 trillion in student debt, according to the Federal Reserve, but none are currently repaying.
It follows a measure originally put in place in 2020 to respond to the COVID-19 pandemic which has since been extended.
When will student loan repayments return?
The current payment freeze is expected to continue until the end of August, the period set by the President Joe Biden.
The break was first introduced by the president donald trump in March 2020 and was later extended by Biden go beyond the initial period set until May 2022.
Biden extended the measure, introduced in the CARES Act, three times in his first year in office, after Asset has already extended it twice before leaving office.
Could the student loan repayment freeze be extended?
Leading Democrats are pushing for another extension of Bidenwith the lies of Elizabeth Warren, chuck schumer and James Clyburn sign a letter.
“We are writing to urge you to act now to extend the pause on federally held student loan payments until at least the end of the year and to provide meaningful student debt cancellation,” they said. they wrote.
Student Loan Debt Cancellations
Some reports suggested that Biden was considering eliminating $10,000 of debt for all borrowers for student loans, which would total a sum of $320 billion.
Proponents of the measure argue that it would ease the debt burden and stimulate the economy.
Critics say it could lead to even higher inflation given the growing demand it would bring without easing supply chain issues.