Day one: Biden will ask the Department of Education to extend the student loan facility

As part of his first day executive actions, President-elect Biden will ask the Department of Education on Wednesday to extend the federal student loan facility in hopes of suspending payments and interest accruals until at least September 30.

Why it matters: The relief that has been in place since March due to the coronavirus pandemic expires on January 31. The measures, which include the expansion of forgiveness and income-based repayment programs, have helped tens of millions of borrowers cope with the financial pressures caused by the public health crisis.

  • According to a Pew poll conducted in August and September, 58% of borrowers said they would find it somewhat or very difficult to repay their loans in the next month.

What to see: Wednesday’s move is expected to be just the first step Biden is taking to tackle the nearly $ 1.7 trillion student debt crisis and get the economy going again.

  • “Relieving the overwhelming financial burden of student debt” will be an immediate priority for the Biden administration, his team said last week.
  • Biden also supports the “immediate” cancellation of $ 10,000 federal student loan debt per borrower, but it is unclear whether he will do so through senior management
  • But the president is facing pressure from some Democrats, including Sens. Chuck Schumer (NY) and Elizabeth Warren (Mass.), To – through executive action – cut up to $ 50,000 in federal student debt for all borrowers.

Worthless: Student debt relief is not part of the $ 1.9 trillion stimulus package Biden unveiled earlier this month.

🎧Go deeper: Biden’s plan to cancel student debt

Comments are closed.