(FeaturedNews.com) – Forbearance is a pause in payments available as an option to student loan borrowers who are struggling to make payments. The US Department of Education expanded that option by requiring federal student loan issuers to offer forbearance to all borrowers during the COVID-19 pandemic. The department has already extended the pause three times. With the latest expiration date around the corner, debtors wonder if President Joe Biden will offer more relief through forgiveness or extend the forbearance again.
On the March 3 airing of “Pod Save America,” White House Chief of Staff Ron Klain said the president is considering how he can offer relief for student loan debt before the pause ends. He noted Biden might extend it again or come up with another solution.
Education Department Sends Another Sign That Student Loan Payments May Not Restart in May https://t.co/z2192zHJLs
— NBC4 Washington (@nbcwashington) March 9, 2022
Klain explained the administration would decide on additional forgiveness or extensions before payments started up again, but there’s no promise the president would wipe out any debt. Progressives have pushed the idea of Biden canceling outstanding loan debt through an executive order. Still, it isn’t clear if he could legally do that.
The forbearance extension, which began in March 2020, ends in two months. It isn’t clear what may happen, but borrowers should plan to begin repayment at the current extension deadline on May 1, just in case Biden doesn’t make a move.
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