Biden stated that the current job numbers show that we have the tools to defeat Covid-19 and keep the economy recovering at an unprecedented rate. However, he also said that the road ahead will be difficult for many, especially those with federal student loans, which is one in six and one in three of our young adults.The Education Department stressed that January was the definitive end date. This is because the Biden administration is under increasing pressure from Democrats to erase as much federal student loan debt as possible.A source familiar with department plans stated that January's expiration date was determined by financial aid cycles and delinquency trends. The emphasis on its finality was meant to provide borrowers more certainty than rolling extensions. The department is also planning for the departure major loan servicers, including the Pennsylvania Higher Education Assistance Agency (known as PHEAA), which manages millions of accounts. They will be using the four months to transition.Supporters of student borrowers cheered the announcement.Persis Yu, director of National Consumer Law Centers Student Loan Borrower Assistance Project said that there were too many moving pieces to start federal student loan repayments. She cited the recent loan servicer shakeup.The news that the federal student loan payment suspension has been extended again is causing relief among borrowers, Ms. Yu stated in a statement. President Biden made the right decision to delay repayment because the student loan system isn't ready to start repayment on October 1.This extension will likely increase the demand for the Biden administration cancel all student loan debt.In a joint statement Senator Chuck Schumer, New York's majority leader, Senator Elizabeth Warren, Massachusetts, and Representative AyannaPressley, Massachusetts, all Democrats who urged Mr. Biden cancel student loan debt through executive order, said that the pause provided relief for millions of borrowers in dire financial straits but didn't go far enough.The statement stated that our broken student loan system continues exacerbate racial wealth disparities and hold back the entire economy. To build a more equitable economy and reduce racial inequality, student debt cancellation is one the most important actions President Biden could take now. We are eager to hear the next steps taken by the administration to address the student loan crisis.
