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Biden admin declines to extend student loan pause, snubbing progressives
Student loan forgiveness approval rate proves it’s a ‘scam’: Dave Ramsey
Best-selling author and personal finance expert Dave Ramsey says an overwhelming majority of student loan forgiveness applicants have not been approved.
The Biden administration still plans to resume federal student loan payments at the beginning of February, rejecting a push from other Democrats to extend the pandemic relief program for millions of borrowers.
Asked Friday whether President Biden intended to extend a payment freeze that's poised to expire in February, White House press secretary Jen Psaki said the administration has no plans to do so and is instead focused on ensuring a "smooth transition back into repayment."
CANCELING STUDENT LOAN DEBT COULD BENEFIT WEALTHY AMERICANS THE MOST
"We will engage directly with federal student loan borrowers to ensure they have the resources they need and are in the appropriate repayment plan," she told reporters. "We're still assessing the impact of the omicron variant… But the Department of Education is already communicating with borrowers to help them prepare for return to repayment on Feb. 1."
The Education Department has provided about $72 billion in relief on student loan interest alone. About 41 million Americans are benefiting from the federal government’s pause of student loan payments, which began in March 2020 and was twice extended.
But the moratorium is officially slated to end on Feb. 1, 2022, and President Biden has made it clear that he doesn't plan to delay the payment freeze any further – despite a recent request from progressive lawmakers.