Thursday, September 21, 2023
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Biden to freeze student loan payments for four months

(Bloomberg) – President Joe Biden is poised to announce a four-month extension to his moratorium on student loan repayments as part of a broader package that would also include college debt, people familiar with the matter said.

A long-awaited effort to ease the burden on student borrowers will be announced Wednesday, according to people familiar with the matter. The latest loan repayment moratorium, which will last until December 31, will be the last Biden endorsement, according to a person familiar with the matter.

This is the seventh freeze extension since the start of the Covid-19 pandemic in March 2020, and Democrats hope to avoid losing their slim majority in the House and Senate after the midterm elections are suspended in November. The latest loan repayment moratorium will expire in August 31.

The White House did not immediately respond to a request for comment.

For months, Biden has been weighing borrowers per student debt and limiting income forgiveness to $125, to $150, 10 for one year. But advocates — including progressive lawmakers, civil rights groups and labor leaders — have pressed the White House to forgive higher debt burdens, which they say are disproportionately borne by black or low-income students.

READ MORE: Biden unveils student loan plan, allies fear too meager

Younger voters’ support could help boost Democrats’ performance in upcoming ballots .

©2022 Bloomberg LP



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