Right now, one of the things most people search about on the internet is “student loan forgiveness Biden”. That’s because there are only 90 days left for the 18-month suspension to end on student loan payments. Some believe that President Biden will give an extension to this. But, if you want to know more about what’s happening, just keep reading!
It All Started With The CARES Act
In response to the pandemic, Congress gave this bill to temporarily put on hold on payments for students. This means freezing interest and stopping collection on the government federal student loans. But this was supposed to last only for 6 months. Both Trump and Biden gave several extensions. Currently, this extension will end on 30th September 2021. So, loan borrowers need to start their repayment process if no student loan forgiveness is present.
Increased Pressure For Extension
Even though there is no official announcement from the president, there is a huge possibility for an extension. Currently, advocate groups and student loan borrower activists are speaking out loud about this because of the several problems that can otherwise occur. Due to the uneven economic recovery, not everyone will be in a position to pay back their loans. After all, the pandemic has not ended at all.
All the possible issues and other concerns were put in a letter and given to President Biden. On the other hand, powerful Democrats have also increased their pressure to give student loan forgiveness.
Is Extending The Student Loan Payment Moratorium That Hard?
The answer to this question is both yes and no. Since reforming the regulations is a tough job, getting an extension through it is hard. On the other hand, this whole is a simple process with an executive order. this is something president Biden did on his very first day in office. And, this will come into effect immediately.
A Pause Can Mean Time For Reforming
As you know, the regulations of the student loan have so many flaws that need a lot of time to reform. That’s why many officials feel that this time given as a pause is the right opportunity to make the necessary changes.
Right now, there is no official statement about Biden student loan forgiveness. But you can be certain that this is a major concern not only for borrowers but also for the government. Only time will tell what will Biden do about this.