‘It’s frustrating and stressful.’ 40 million people are in the dark about whether or not student loan payments will resume

Representative Ilhan Omar (D-MN) joins activists in a demonstration outside an entrance to the White House calling for the cancellation of student debt in Washington, U.S., April 27, 2022.

Scott Heins is planning his budget for next month and he doesn't know if he'll have enough money to cover his health-care expenses or groceries.

He isn't the only one who doesn't know if his student loan bill will be due.

Heins, a photographer who owes more than $20,000, said that the Biden administration had been silent. It is frustrating and stress inducing.

Most federal student loan payments have been on hold since March of 2020 when the US was struck by the coronaviruses. Donald Trump and Joe Biden extended the break many times.

According to Personal Finance, 75% of families don't know a key date to get financial aid.

The White House said earlier this month that Biden would make a decision on the student loan payments by the end of the month. The president said he would announce how he plans to move forward with student loan forgiveness before then. He supports canceling $10,000 for all borrowers but is under pressure to give more relief.

It is just two weeks before federal student loan bills are set to resume, and although there is a lot of speculation that another extension is likely with no plan to restart the payments in motion, the White House has not commented.

The vice president for higher education policy at Veterans Education Success said that another payment freeze is inevitable because they haven't issued any guidance so close to the start date.

Mark Kantrowitz said that restarting the federal payments without more communication would lead to a disaster. He said that after more than two years without payments, many borrowers will need financial help.

There would be a lot of calls to the call centers from borrowers who need deferments or forbearances. Some borrowers wouldn't have enough money to pay the bill after just a week or two.

He said that delinquency rates could go up. Almost three-quarters of student loan borrowers said in a survey that they weren't financially prepared to resume their payments.

Scott Buchanan is the executive director of the Student Loan Servicing Alliance, a trade group that represents federal student loan servicers.

Buchanan wants the Education Department to allow them to educate borrowers on their options for a couple of months before payments begin. It isn't happening.

There was no response from the White House.