On Wednesday, President Joe Biden is expected announce that his administration will extend the student loan payment freeze. It is currently set to expire at the end of May.
According to administration officialsBiden will only extend the suspension for three months. August 31 would be the new expiration date.
Despite the fact that the action was received limited praise from lawmakers, it’s far from what debt advocates and Democrats and progressives in Congress have been demanding. Last week, nearly 100 DemocratsI wrote Biden to urge him to extend his payment pause until at least the end in the year and to cancel student debt, as he promised to do during the campaign trail.
Rep. Alexandria Ocasio-Cortez (D-New York), pointed out that student debt cancellation is not possible. Borrowers will continue to live with looming deadlines which can lead to financial stress.
“I think some folks read these extensions as savvy politics, but I don’t think those folks understand the panic and disorder it causes people to get so close to these deadlines just to extend the uncertainty,” she wrote in reaction to the extension news. “It doesn’t have the effect people think it does. We should cancel them.”
Ocasio Cortez said that constituents have asked her if they should cancel medical procedures and sell their cars in preparation for restarting payments. The uncertainty is a “strain,” she said.
Activists have been pressing the Biden administration to address student debt. Monday saw the Debt Collective march in Washington, D.C. to demand that Biden cancel student loan.
“[P]ausing a crisis does not solve it,” the Debt Collective wrote on Tuesday. “Biden has the complete authority to wipe it out completely with an executive order. Do it now [Biden].”
We wrote the executive orders for you @POTUS. We even brought it to D.C. — let us know when we can bring it by @VP. pic.twitter.com/qB0mMZ3jIy
— The Debt Collective (@StrikeDebt) April 4, 2022
According to the Student Debt Crisis Center (SDC), borrowers collectively have a total of $1,04,5 billion in student debt. about $1.9 trillion in debt; for more over 40 million peopleThe loans are a major financial burden for students in the U.S. are holding them backThe ability to participate in the economic system. The vast majority of borrowers say that they’re unprepared for payments to restart, with many saying that the payments represent a huge portion of their salaries.
“Student loans have been paused since 2020 and our economy hasn’t collapsed,” wrote Rep. Jamaal Bowman (D-New York) on Tuesday. “The cost of living goes up while wages stagnate. Don’t just delay payments, [President Biden], cancel student debt.”
