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White House may delay student loan payments as it weighs debt forgiveness


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President Joe Biden made no mentionhe announced student loan forgiveness during Tuesday’s State of the Union speech. A spokesperson for the administration said cancellation is still possible.

White House Chief-of-Staff Ron Klain indicated that the decision to forgive student loans through executive action would be made prior to payments returning. The current plan is to resume payments in May, after the bills were placed on pause from March 2020.

Klain: “The President is going to examine what we should do about student debt before it expires or he will extend the pause.” saidThe podcast Pod Save America posted on Thursday night.

The five-year payment pause was already extended during the pandemic.

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Some Democrats, advocates, and borrowers are frustrated by the fact that Biden made very few to no references to loan cancellation during his tenure. He promised $10,000 loan cancellations on the campaign trail.

He didn’t mention the subject in his address to the nation, and he did not answer the reporter’s query if he would still cancel the debt during a press conference.

According to the White House, President Trump is considering cancelling his trip.

Critics of a student debt jubilee It would not be fair to people who haven’t borrowed for education, or paid off loans. significantly stimulate the economy because college graduates tend to be higher earners more likely to redirect their monthly bill to savings than additional spending.

Progressives and advocates claim that the worst effects of the student loan crisis have been for people of color, women and children of colour.

They warn that Democrats will be punished for inaction in November’s mid-term elections.

“A lack of movement on student debt cancellation will result in the Democratic party’s base — young people, Black voters — staying at home,” said Thomas Gokey, co-founder of the Debt CollectiveA national alliance of creditors.

A recent poll found that nearly two-thirds of likely voters are in support of Biden canceling some or all of student debt, with more than 70% of Latino and Black voters in favor.