Biden Will Extend Student Loan Payment Pause For 4 Months

MAR 28 2022·Updated JAN 23 2023

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Image credit: Win McNamee/Getty Images [via Business Insider]

The Facts

On Tues., the Biden administration announced it will pause federal student loan payments until Aug. 31. The delay will be the seventh since the pauses began early in the pandemic.
nytimes
It comes less than a month before payments were scheduled to restart, affecting tens of millions of borrowers, including 35 million who have not made payments that otherwise would have been due.
nytimes
On Mon, Biden unveiled a $5.8T budget request, with proposals to increase funding for military spending, police and education through raising taxes on the wealthy.
Business Insider
Much of the proposed education funding would go towards K-12 students. Another portion is specific to higher education, increasing funding for historically Black colleges and universities by $752M, doubling the maximum Pell Grant award, and giving the Federal Student Aid office $2.7BN to better support student-loan borrowers.
Business Insider
The budget proposal would improve customer support for student-loan borrowers as well as transition them to more stable long-term contracts.
Business Insider

Sources Split

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RIGHT

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The Spin

Progressive narrative

Generations of students shouldn't be plagued with years of debt for attending higher education. Biden risks alienating younger voters if he continues not to deliver on the campaign promises that got him elected.

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Right narrative

Canceling student debt would be shortsighted and unfair to the majority of Americans who will ultimately be stuck paying the bill for a debt many chose not to accumulate. Student loan borrowers shouldn't be receiving relief from taxpayer dollars, they should be better prepared to understand the costs of a loan before taking it on.

Business Insider