The Biden administration is considering placing another extension on the moratorium for student-loan payments. The moratorium is currently set to close in January, however, we should know if it will be extended fairly soon, as the Education Department said it would announce at the end of the week. Going into this announcement, it is very unclear which way this will swing as White House press secretary Jen Psaki announced, “The President has not made his decision yet” during a conference this past Tuesday.
Looking Back on the Moratorium
Pleading for Relief
There was not just focus on the issues potentially caused within Warren, Schumer, and Pressley’s letter, it also called for Biden to take action by forgiving $50,000 of student debt for every borrower. This is a large additional ask as those with outstanding loans have already saved billions of dollars due to the pause being placed on interest accrual since March 13th, 2020.