Student-loan payments are set to restart in less than 3 weeks. It's the closest Biden has ever been to the deadline without giving borrowers an update.

President Joe Biden seen at the White House in Washington, DC May 30, 2022.REUTERS/Joshua Roberts
Student loan payments are set to resume after August 31.
In less than 3 weeks, Biden has yet to indicate if that date will be moved.
It's the closest borrower ever to resume payments without an update from Biden.
"Tick tock, Mr. President," said Massachusetts Senator Elizabeth Warren in July 2021.
Over a year later, the clock is still ticking for millions of federal student loan borrowers as they wonder — with less than three weeks until their payments resume — if that deadline will be extended and if President Joe Biden will cancel their student debt.
Biden and his administration have confirmed on numerous occasions that he will stick to his schedule to announce sweeping student loan forgiveness before August 31. But that's also the date the pandemic pause on student loan payments is due to expire, and attorneys and lawmakers on both sides of the aisle have expressed concerns about that fast-approaching deadline. There is very limited time for the Department of Education to notify borrowers and the companies servicing their loans of the date when they will have to start paying their monthly bills again.
The four previous payment pause extensions didn't give borrowers extensive warning -- but if Biden stuck to his earlier deadlines, borrowers would now know if payments will resume in late August. For example, when payments were scheduled to resume on May 1, Biden announced an extension on April 5, and when payments were scheduled to resume last September, Biden announced an extension in early August.
Although there is no announcement yet, an extension of the pandemic pause could be imminent. In recent weeks, the Department of Education has ordered lending companies to stop messaging student loan borrowers about resuming payments. This is the same as what the ministry did before the last extension of the pause. But without rigorous guidance from the department, there's not much the borrowers or the companies can do.
Scott Buchanan, executive director of the Student Loan Servicing Alliance -- a trade group that represents government student loan providers -- told Insider that he thinks "the department remains unsure about what the administration will and won't do here." being able to tell borrowers that repayments will resume and then tell them they haven't.
And with Biden reportedly considering a sweeping $10,000 student loan forgiveness for borrowers making less than $150,000 a year, Buchanan added that it would be "months" before lending companies figured out how they can implement that relief, but at this point he's preparing for student-loan payments to resume on September 1 unless Biden directs companies otherwise.
Still, Education Secretary Miguel Cardona promised in June that student loan borrowers would receive "extensive notifications" of any changes to their account balances -- and many would argue that half a month isn't quite the notification they expected.
A break extension is a good start, Dems say -- but not enough
It's no secret how Republican lawmakers feel about a continued extension of the student loan pause and sweeping debt relief. Three of them recently introduced legislation that would end targeted loan forgiveness programs while restarting loan payments to prevent the relief for all federal borrowers from ever taking effect. Much of their criticism is directed at the costs taxpayers have incurred from targeted relief — for example, in a fact sheet for the legislation, they said the payment pauses have cost $4.3 billion a month.
But Democrats aren't too concerned about that cost — in fact, many have argued it's a needed relief as millions of borrowers continue to recover from setbacks from the financial pandemic. In late July, 107 Democratic lawmakers signed a letter urging Biden to extend the pause on student loan payments, writing that borrower repayments would “force millions of borrowers to choose between paying their state student loans or building a roof their head, food on the table, or paying for childcare and health care — as costs continue to rise and as another variant of COVID-19 leads to more hospitalizations across the country.
Lawmakers also noted that resuming payments "would further complicate administrative measures already underway or contemplated by the department," such as sweeping student loan easing and reforms of targeted assistance programs such as public service loan forgiveness -- a program with a temporary one Renunciation, which supporters are also pushing for.
But extending the pause isn't where Democrats want Biden to end. Since the president pledged to approve a $10,000 loan write-off during the campaign, Democrats and supporters have waited over two years for that to happen, urging him to go as far as he can with any relief . Senator Warren, for example, continues to push for $50,000 in debt relief, even though Biden previously said that amount is off the table, and groups like the NAACP want $50,000 to be the minimum amount for the relief under consideration.
“The American people are concerned. Voters are worried. Your base is concerned. Extending the freeze will only add to the fear millions of Americans feel,” NAACP President Derrick Johnson wrote in a recent letter to Biden. “As the midterm elections draw near and millions of Americans — including NAACP members — wonder when their concerns will be addressed,” Johnson added, “we pray that God will give you the courage to make a bold decision about student debt; one that will be remembered and celebrated for generations to come."
Read the original article on Business Insider
Joe Biden
President of the United States since 2021
Elizabeth Waren
American politician

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