President Biden announced he would extend the pause on student loan repayments which were set to resume on January 31, 2022. Calls for another extension or complete cancellation of student loans have been mounting from people and lawmakers. Among the most vocal is Senator Elizabeth Warren, Chuck Schumer and Rep. Ayanna Pressley. “The pause on federal student loan payments, interest, and collections has improved borrowers’ economic security, allowing them to invest in their families, save for emergencies, and pay down other debt. Restarting payments without canceling student debt will undermine these families’ economic progress,” the lawmakers wrote, “Our broken student loan system continues to exacerbate racial wealth gaps and hold back our entire economy”.
Despite the evidence for cancelling student debt, however, the Department of Education and President Biden, this will be the final extension before payments resume in May. “It is the department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high-quality higher education,” the statement quoted Education Secretary Miguel Cardona as saying.