The Christmas gift of three additional months of relief was given to 43 million federal student-loan borrowers by President Joe Biden.
Lawmakers and advocates said that time should be used to cancel student debt, not prepare for payments to resume.
The Omicron variant is the primary reason for the Education Department to change the student loan payment date. Biden urged federal borrowers in a statement to use this extra time to prepare for repayment in 90 days, contrasting the announcement in August.
"As we are taking this action, I'm asking all student loan borrowers to do their part as well: take full advantage of the Department of Education's resources to help you prepare for payments to resume; look at options to lower your payments through income-based repayment plans; explore
The department will continue to provide tools and supports to borrowers so they can enter into the repayment plan that is responsive to their financial situation, such as an income-driven repayment plan, according to the Secretary.
Since taking office, Biden has canceled over $12 billion in student debt for people who were cheated by for-profit schools. They say it's not enough to tackle the crisis.
Americans cannot be crushed by student debt.
Biden's extension of the payment pause was applauded by leading lawmakers. Senate Majority Leader Chuck Schumer, Massachusetts Sen. Elizabeth Warren, and Massachusetts Rep. Ayanna Pressley said in a statement that the pause allowed borrowers to make ends meet and afford basic necessities, but they still want Biden to deliver on his campaign promise of loan forgiveness.
The lawmakers said that they would continue to call on President Biden to take executive action to cancel student debt, which would help close the racial wealth gap for borrowers and accelerate the economic recovery.
December 23, 2021.
Student-loan forgiveness advocates agreed. The president of the Student Debt Crisis Center said in a statement that the Omicron variant is a scary reminder that Americans cannot be crushed by student debt as they shoulder this health and economic crisis.
Biden has yet to fulfill his promise to approve student-loan forgiveness, which could cost Democrats the majority in the upcoming elections. Alexandria Ocasio-Cortez said last month that it's "delusional" to think Democrats can get re-elected if they don't act on priorities for voters.
Vice President Harris told Face the Nation that the administration must continue to be vigilant on the topic, but did not provide a specific way to get relief to borrowers.
"Well, I think that we have to continue to do what we're doing and figure out how we can creatively relieve the pressure that students are feeling because of their student-loan debt," Harris said.
