WASHINGTON, DC - JUNE 22: U.S. Senate Majority Leader Sen. Chuck Schumer (D-NY) speaks on student debt at the AFL-CIO on June 22, 2022 in Washington, DC. The AFL-CIO held an event to discuss “the importance of student debt cancellation for American workers.” Alex Wong/Getty Images
Over 100 Democrats signed a letter to Biden urging him to extend the student-loan payment pause.
Over 100 Democrats signed a letter to Biden urging him to extend the student-loan payment pause.
They referenced the ongoing pandemic and inflation as reasons for continued relief.
The payment pause is currently set to expire on August 31, just over a month away.
Over 100 Democratic lawmakers have a message for President Joe Biden: extend the student-loan payment pause.
On Thursday, Sens. Chuck Schumer, Bob Menendez, Cory Booker, and Elizabeth Warren, along with Reps. Ayanna Pressley, Lauren Underwood, and Tony Cárdenas, led 100 of their Democratic colleagues in sending a letter to Biden and Education Secretary Miguel Cardona pushing for an extension of the federal pause on student-loan payments. The pause, currently set to expire after August 31, is just over a month away, and millions of borrowers are still waiting for news on whether it might be extended again, along with Biden's decision on broad student-loan forgiveness.
"Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and health care—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide," the lawmakers, including Rep. Alexandria Ocasio-Cortez and Rep. Ilhan Omar, wrote. "Despite significant decreases over the last month, gas prices are still high, and many borrowers still have to pay exorbitant amounts each week in order to commute to their jobs."
Inflation levels in the US right now are at a 41-year high, and it has some members of Biden's administration worried that canceling student debt could exacerbate the high prices. Jared Bernstein, a member of the White House Council of Economic Advisers, previously told The New York Times that restarting payments at the same time as canceling student debt could balance out any inflationary impact.
But yet, speculations of another possible extension are circulating. The Education Department in recent weeks has instructed student-loan companies to halt outreach to borrowers regarding the upcoming student-loan resumption, which is the same action the department took in March before extending the pause. But while Education Secretary Miguel Cardona said borrowers will receive "ample notice" on any changes to the timeline, August 31 is quickly approaching and uncertainty levels are high.
Biden is also in the process of making a decision on broad student-loan forgiveness, reportedly considering $10,000 in relief for borrowers making under $150,000 a year. But given the possibility of targeted relief, lawmakers and advocates say an extension of the pause is further warranted to ensure any relief can be fully implemented before borrowers are hit with another monthly bill.
The lawmakers referenced how resuming payments would "further complicate administrative actions already underway or contemplated by the Department" like forgiveness, along with temporary waivers for targeted loan forgiveness programs for public servants and low-income borrowers.
While the White House has not yet commented on another possible extension, Republican lawmakers have consistently criticized the possibility. GOP Rep. Virginia Foxx recently said Biden has "wildly overstepped" his authority by extending the payment pause four times, chalking them up to a "stimulus payment" because they have left money in borrowers' pockets during the pandemic.
When it comes to broad relief, Press Secretary Karine Jean-Pierre said during a press briefing this week that Biden "understands what this means for families, how burdensome this can be. I just don't have anything more to share. And he said himself, by the end of August, so that's right around the corner... He'll make a decision."
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