Payments that were scheduled to resume in May have been pushed back through August amid calls for broad cancellation.
Payments and interest accrual were suspended for federal student loans on March 13th, 2020 with the start of serious pandemic restrictions. The pause was meant to expire on May 1st but has been extended for the fourth time.
Education Secretary Miguel Cardona said in a statement that the Education Department would revamp the loan repayment system during the extension.
Reportedly, the revamps include plans to erase delinquency and default to give borrowers a fresh start as well as continue canceling debt for certain groups such as borrowers with disabilities or those who work in public service.
Representative Virginia Foxx (R-NC) slammed the move, stating, “The outrageous extension of this moratorium contradicts the administration’s promise to the American public and without any basis other than the President’s sinking poll numbers.”
“This isn’t about the pandemic, this isn’t about targeted relief for struggling borrowers, it’s about setting the stage for blanket loan forgiveness,” she said.
While other Republicans speak out against the possibility of loan forgiveness, Democrats are looking forward to it.
Representative Alexandria Ocasio-Cortez (D-NY) took to Twitter to again call on Biden to cancel student loans altogether.