If President Joe Biden does not push back the February restart of student-loan payments, advocates want to be sure that other relief measures are in place.
The Center for American Progress, the Institute for College Access and Success, and New America sent a letter to the president and education secretary on Monday regarding the student loan restart. They urged Biden to delay the start of payments past February 1 and cited two primary economic concerns: rising Omicron cases could jeopardize workers' return to work, and given the epidemic of racial disparity, borrowers of color will face "undue hardship" if payments are turned on too.
The letter said that it was in the best interest of borrowers and their families to extend the pause on student loan repayment.
Biden hasn't yet indicated that he's going to extend the pause. If that is the case, the organizations recommend additional protections for student-loan borrowers.
14 US senators recommend waiving interest for all borrowers.
Return all borrowers who are in default to good standing.
The streamlined process to apply for an income-driven repayment plan should be known by all borrowers.
Offer a grace period to prevent borrowers from immediately becoming delinquent on their debt, and announce provisions to hold borrowers harmless for payments.
The Education Department was considering plans for the transition back into repayment and some of those recommendations were included in a report. The department was considering implementing a "safety-net period" during which borrowers who miss payments during the initial 90 days after the pause ends will be placed on forbearance.
The plans included a "fresh start" for borrowers who default, along with simplified enroll to income-driven repayment plans. The simplified application process for those seeking a monthly repayment plan based on family income was posted by Federal Student Aid this week, according to Insider.
43 million federal student-loan borrowers are still waiting to hear from the Education Department about when they can resume payments. White House Press Secretary Jen Psaki said earlier this month that the current payment pause will end early next year, but the administration is still looking at the impact of the Omicron variant.
According to an analysis from the Roosevelt Institute, restarting payments will cost 18 million borrowers $85 billion over the next year, and many borrowers still maintain they are not financially prepared to resume payments next year.
