US Biden Won’t Extend Student Loan Relief And Confirms Student Loan Payments Restart February 1 - Melinda Scott on Suicide Watch?

The Biden administration won’t extend student loan relief and confirmed student loan payments restart February 1, 2022.

Here’s what you need to know.

Student Loans​

White House Press Secretary Jen Psaki confirmed to reporters during a press briefing that the Biden administration won’t extend student loan relief — and the student loan payment pause will end January 31, 2022. (No, Biden won’t extend student loan relief again). Here are some highlights from her comments:

  • “In the coming weeks, we will release more details about our plans”
  • “We will engage directly with federal student loan borrowers to ensure they have the resources they need and are in the appropriate repayment plan.”
  • “We are still assessing the impact of the Omicron variant.”
  • “A smooth transition back into repayment is a high priority for the administration.”
  • “The Department of Education is already communicating with borrowers to help them to help to prepare for return to repayment on February 1.”
  • “41 million borrowers have benefitted from the extended student loan payment pause, but it expires February 1, so right now we’re just making a range of preparations.”

Student loan relief: this won’t sit well with progressives and advocates​

Progressive members of Congress, leading advocacy groups and student loan borrowers have lobbied President Joe Biden to extend the student loan payment pause beyond January 31, 2022. (Here’s a list of everyone who wants Biden to extend student loan relief). They cite potential financial devastation for millions of borrowers if temporary student loan forbearance isn’t extended. Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) say that 89% of student loan borrowers feel financially unprepared to restart student loan payments. They also argue that nine million student loan borrowers in default will suffer further financial detriment. (5 ways Biden could cancel more student loans). With other U.S. senators, they have pressured Biden to postpone the return to student loan payments for at least several months and at most until the end of the Covid-19 health emergency. Despite these pleas, the Biden administration seems definitively focuses on ending this student loan relief on January 31.

Student loan cancellation won’t happen either​

Some student loan borrowers have hoped that Biden will deliver a last-minute financial lifeline by enacting wide-scale student loan cancellation. (Here’s how to get student loan forgiveness during the Biden administration). However, there is no indication that Biden will cancel everyone’s student loans. Therefore, don’t expect Biden to cancel student loans before student loan relief ends.

On the contrary, Psaki provided an update on Biden’s actions to date to enact student loan forgiveness. Since becoming president, Biden has cancelled $12.5 billion of student loan debt for approximately 640,000 student loan borrowers. When questioned by a reporter about the Biden administration’s plans to help student loan borrowers, Psaki made no mention of any future plans for wide-scale student loan forgiveness. (How to qualify for automatic student loan forgiveness). Psaki’s posture has been consistent with Biden’s in that the president supports wide-scale student loan cancellation of up to $10,000, but Congress should pass legislation on mass student loan forgiveness.

With less than 60 days remaining until the end of temporary student loan relief, it’s essential that you understand all your options for student loan repayment. Here are some popular options to save money on your student loans:


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Cuckoman said:
If you cancel the student debt now then you can not run on cancelling it on your 2024 platform. Same with 15 minimum wage hahahaha
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canceling student debt also raises the question about how future student loans are handled. like, do you just repeatedly cancel them year after year so it's basically just free money for anyone who wants and qualifies for it? that would be nonsensical. or is it just a one time thing? that would be pretty unfair to all who want one after the one time canceling is over.

also, in general, canceling them would be a gigantic slap in the face of everyone who took out and paid back such a loan in the past.
 
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DumbDude42 said:
canceling student debt also raises the question about how future student loans are handled. like, do you just repeatedly cancel them year after year so it's basically just free money for anyone who wants and qualifies for it? that would be nonsensical. or is it just a one time thing? that would be pretty unfair to all who want one after the one time canceling is over.

also, in general, canceling them would be a gigantic slap in the face of everyone who took out and paid back such a loan in the past.
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Cancelling student debt basically means the end of the college industrial complex.

The reason banks give out loans for ridiculously expensive and useless degrees they KNOW many students won’t pay off with an actual job in the field is because they know for sure they can just garnish their Starbucks wages for the next 30 years. Once that guarantee is gone? Banks will start thinking twice about giving out a loan for a $80k gender studies degree that will just get defaulted on in five years.

This is why I am in full support of college debt forgiveness, by the way.
 
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Gar For Archer said:
Cancelling student debt basically means the end of the college industrial complex.

The reason banks give out loans for ridiculously expensive and useless degrees they KNOW many students won’t pay off with an actual job in the field is because they know for sure they can just garnish their Starbucks wages for the next 30 years. Once that guarantee is gone? Banks will start thinking twice about giving out a loan for a $80k gender studies degree that will just get defaulted on in five years.

This is why I am in full support of college debt forgiveness, by the way.
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ngl everyone would be for the end of the college industrial complex, it produces a ridiculous amount of PhDs in the humanities and the demand isn't nearly high enough to keep up with the supply.
 
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Gar For Archer said:
Cancelling student debt basically means the end of the college industrial complex. ... This is why I am in full support of college debt forgiveness, by the way.
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Same. Elite overproduction has to stop. I don't want one single more Plumber Joe's daughter turning into a neurotic, blue-checked oikophobe of a postgrad. Trade school subsidies + onshoring.
 
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Gar For Archer said:
Cancelling student debt basically means the end of the college industrial complex.

The reason banks give out loans for ridiculously expensive and useless degrees they KNOW many students won’t pay off with an actual job in the field is because they know for sure they can just garnish their Starbucks wages for the next 30 years. Once that guarantee is gone? Banks will start thinking twice about giving out a loan for a $80k gender studies degree that will just get defaulted on in five years.

This is why I am in full support of college debt forgiveness, by the way.
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They are fine with forgiveness because the government pays those loans back, essentially guaranteeing the lender will break even. Banks will only be hesitant to give loans when there is a high risk of defaulting. That would only happen in a very damaging manner if student loans were discharged via bankruptcy.
 
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Neigh said:
They are fine with forgiveness because the government pays those loans back, essentially guaranteeing the lender will break even. Banks will only be hesitant to give loans when there is a high risk of defaulting. That would only happen in a very damaging manner if student loans were discharged via bankruptcy.
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Which confuses me on why they're doing this. Do they really think moderate democrats are going to be alienated by them extending this program?
 
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FlappyBat said:
Which confuses me on why they're doing this. Do they really think moderate democrats are going to be alienated by them extending this program?
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I think the lenders don't like suspending interest for this long and those lenders have a lot of political sway.
You'd be wise to choose banks over Bernie Sanders type voters.
 
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Gar For Archer said:
The reason banks give out loans for ridiculously expensive and useless degrees they KNOW many students won’t pay off with an actual job in the field is because they know for sure they can just garnish their Starbucks wages for the next 30 years.
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Don't forget garnishing Social Security after that.

I'm in favor of cancelling this kind of student loan debt, whether the recipients are "deserving" or not. You loaned someone $200K for gender studies? That was always predatory, you always knew it, and now you don't get your money back. Too bad.
 
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