Biden Extends Ban on Student Loan Repayments

Joe Biden has chosen to extend the freezing of the student loan repayments by 90 days, citing the pandemic. The measure was originally started under the Trump administration a couple of years ago and remains ongoing.

Biden categorically refused to remove student loans, despite Democratic calls

In a statement issued from the White House, Biden estimated the US economic recovery was strong in the outgoing year, and the country produced six million new jobs.

However, according to him, most of the student borrowers are facing dire consequences of the pandemic, for which they are unable to resume their payments.

These newly enforced orders will affect almost 41 million students, including 27 million who have not been paying their dues since the start of the pandemic.

Since Biden’s inauguration, Democrat lawmakers have continuously been pushing him to deliver on his campaign promise of removing $10,000 per person of federal student loan debt.

However, until now, Biden has not entertained the calls of radical lawmakers. For instance, Senate Majority Leader Chuck Schumer insisted Biden remove as much as $50,000 per loan through executive action.

Contrary to Schumer, Nancy Pelosi indicated Biden does not have enough power to do it all alone through executive action without congressional involvement. Biden already rejected removing student loans in their entirety in the past.

While giving an interview to the New York Times in May, Biden asserted he does not endorse the idea the public should pay the loans of students going to expensive colleges like Penn, Yale, and Harvard.

Biden’s contradictory statements on the health of the US economy

Under the Trump administration, the measure was introduced in the CARES Act in March 2022, but the former president extended it later on.

Likewise, after coming into office, Biden extended the ban until September 30, 2021, but one month ahead of it, he pushed the date to January 31, 2022, for “one final time.” Now, with this latest extension, Biden is backstepping from his own statement. 

Meanwhile, Jim Banks, a Republican congressman from Indiana, slammed Biden for doublespeak on the economy and painting different pictures of various issues.

He was referring to the White House’s comments, which claimed the unemployment rate came to a 50-year low since Biden arrived in office…while at the same time mentioning the pandemic is causing economic turmoil to justify the extension in freezing student loans payments.

Radical leftist lawmakers are still pushing the president to cancel student loans universally. Ayanna Pressley, a member of “the Squad,” noted continuing student loan debt is a sort of violence, which must be stopped.

Kamala Harris also jumped into the discussion, stating students who are buried under heavy loans could not start families or buy their own homes. Therefore, the administration must figure out a way to deal with these crises.