ORsee 43 million people in United States according to the Federal Reserve, they owe a total of $1.7 trillion in student debt, but no one is currently paying it off.
This comes after a measure originally introduced in 2020 to respond to the COVID-19 pandemic, which has since been extended.
When are student loan payments due?
The current freeze on payments will last until the end of August, as the deadline set by the President Joe Biden.
The pause was first introduced by the President Donald Trump in March 2020, and then was extended for Biden go beyond the initial period set until May 2022.
Biden renewed the measure introduced in the CARES Act three times in his first year in office, after Trump already renewed it twice before leaving office.
Can the student loan freeze be extended?
Leading Democrats push for further extension Bidenwith lies Elizabeth Warren, Chuck Schumer as well as James Clyburn signing a letter.
“We are writing to urge you to act now to extend the federal student loan pause until at least the end of the year and secure meaningful student debt relief,” they wrote.
Cancellation of student loan debt
Some reports suggested that Biden considered repaying $10,000 of debt for all student loan borrowers, totaling $320 billion.
Supporters of this measure argue that it will ease the debt burden and boost the economy.
Critics argue that this could lead to even more inflation, given the increased demand it will generate without easing supply chain problems.