Biden mulling student loan freeze extension
By Sylvan Lane - 12/21/21 04:51 PM EST
White House press secretary Jen Psaki on Tuesday suggested President Biden could extend a pandemic freeze on student loan payments and interest accrual.
During a Tuesday briefing at the White House, Psaki told reporters Biden has not yet decided whether he will allow millions of Americans to forgo student loan payments at no additional cost beyond Jan. 31.
Biden in August extended an order initially issued by former President Trump in March 2020 to pause due payments and interest on federally held student loans through the end of next month. The administration said it would likely be the last extension of the order, and Psaki all but ruled out another extension in a press conference two weeks ago.
"We're still assessing the impact of the omicron variant, but a smooth transition back into repayment is a high priority for the administration,” Psaki said on Dec. 10.
Even so, Biden has faced intense pressure from progressives not only to extend that pause, but also cancel a significant chunk of federally held student debt. Democratic lawmakers have warned Biden not to begin collecting debt payments as the economy braces for another potential hit from the pandemic amid an otherwise strong recovery.
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https://thehill.com/policy/finance/586828-biden-mulling-student-loan-freeze-extension
