President-elect Joe Biden’s administration plans to maintain the suspension of student loan payments once he takes office later this month.
David Kamin, who is about to take office as deputy director of the National Economic Council, said: “On the first day, the president-elect will ask the education ministry to extend the existing pause on student loan payments and interest for millions of Americans with student loans, ”USA Today reported.
Due to the pandemic, student loan payments have been canceled. Originally, the suspension was to last until September, but was then extended until December 31, 2020. However, it was then extended until the end of that month. Although Biden plans to continue the break, it has not been reported for how long.
They also plan to push Congress to write off $ 10,000 in student loan debt per person, according to officials. USA Today reports that activists, who have advocated for the forgiveness of a much larger amount of debt, may be critical of Biden’s administration.
Minority leader Senator Chuck Schumer pushes Biden to forgive more, up to $ 50,000 in loan debt. “We have come to the conclusion that President Biden can cancel this debt, can cancel $ 50,000 in debt on the first day he becomes president,” Schumer said in December, according to CNBC. “You don’t need Congress; All you need is a stroke of a pencil. “
Eliminating all student loan debt is a more polarizing topic. Some argue that paying off all debt would unfairly benefit people who have a college education and generally earn more money, as USA Today reported.
Federal Reserve Data reports that the United States has an estimated $ 1.7 trillion in student loan debt, while the Institute for College Access and Success reports that 2019 college graduates had an average of $ 28,950 in student loan debt. student loan.
CNBC reported in October that less than 11% of borrowers were repaying their student loans during the pandemic. This represents about 4.6 million out of 42 million borrowers who are repaying their student loans.