The midterms are fast approaching, and one of the easiest wins the Biden Administration can have in their favor is some form of permanent student loan relief. President Biden has pushed back on canceling up to $50,000 of debt, despite representatives in Congress calling for it to be done.
In December 2021, Biden announced an additional grace period–stating federal student loan payments would resume in May. Now, the administration is dropping hints to another extension impacting millions of borrowers , according to Politico.
Education Department officials have instructed the companies that manage federal student loans to hold off on sending required notices to borrowers about their payments. While the White House has not given an official date, nor did the guidance a concrete one, all signs are pointing to another delay in payments.
White House chief of staff Ron Klain stated in his interview with “Pod Save America” last week that the White House was pondering another delay and deciding whether to use executive action to cancel a certain amount of debt before they resume.
“The Department will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates,” an Education Department spokesperson told POLITICO on Tuesday. “The Department’s Federal Student Aid office will also continue communicating regularly with servicers about the type and cadence of servicer outreach to borrowers.”
President Biden noted in his campaign that a minimum of $10,000 per person should be forgiven. Senate Majority Leader Chuck Schumer has stated Biden has the power to cancel up to $50,000 of student debt “with a flick of a pen.” Sixteen thousand borrowers have had $415 million in loans erased in terms of defense against for-profit schools like DeVry. According to Forbes, the Biden administration also announced 100,000 student loan borrowers have been identified as qualifying for $6.2 billion in student loan forgiveness in an expanded program for public service workers.
From as far back as October 2021, Education Secretary Miguel Cardona stated the administration was looking at how broad an action they could take regarding federal student loans.