Biden Mulling Ways To Support Student Loan Borrowers When Payments Resume

Biden Mulling Ways To Support Student Loan Borrowers When Payments Resume

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The Biden Administration is mulling ways to ensure borrowers are supported when federal student loan repayments resume in September, as congressional Democrats push to extend the pause in payments and urge President Biden to unilaterally act to cancel up to $50,000 in debt per borrower. 

The Department of Education paused federal student loan payments in March 2020 at the onset of the coronavirus pandemic and set the interest rates to 0% during the pause. Federal borrowers are scheduled to resume payments on Oct. 1. 

WARREN, SCHUMER PRESS BIDEN TO EXTEND PAUSE IN FEDERAL STUDENT LOAN PAYMENTS

A Biden Administration official told Fox News Wednesday that the pause was designed to support borrowers impacted by the pandemic and its economic impact, but noted that the U.S. economy, each day, is making progress and recovering. 

The official added that the administration is still aware that there are impacts for individual borrowers and families, saying the Department of Education is working to ensure that borrowers still struggling amid the economic impact of the pandemic are supported when the pause in payments expires on Sept. 30. 

But dozens of Senate Democrats are calling on President Biden to extend the federal student loan payment moratorium by at least six months. 

Last week, 64 lawmakers urged the president to take action before the Sept. 30 deadline and requested the pause be extended until March 31, 2022, or until the economy returns to its pre-crisis levels—whichever is longer. 

The effort was spearheaded by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Eliza

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