Biden Extends Freeze on Student Loans
By Marissa Edelman
President Biden passed legislation extending the freeze on student loan payments on his first day in office.
This extension means that all people who have student loans from the Department of Education are eligible to take a pause on paying their loans without accruing interest on the missed payments. The average student debt bill is $393 a month, and the unemployment rate is currently 3.8% for those with a bachelor's degree or higher.
During his presidential campaign, President Biden tweeted” “... we should forgive a minimum of $10,000/person of federal student loans.” However, this policy has not been included as part of his $1.9 trillion dollar stimulus plan.
The US Department of Education began implementing relief on loans in March of 2020, in response to the coronavirus pandemic. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27th by former President Donald Trump, who extended the date to September 30 as part of the CARES (Coronavirus Aid, Relief, and Economic Security) Act. On August 8, the Department of Education made the decision to offer a freeze on federal student loans until December 31. With many Americans still without job security due to the pandemic, the Trump administration continued to withhold federal student loan charges from December 4 until January 31, 2021. When President Biden came into office on January 20, he decided to continue the freeze on federal student loan payments until September 30, 2021.