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Biden to extend student loan repayment for another 3 months

The Biden administration is expected to extend the moratorium on student loan repayments through August 31.

Payments were due to resume on May 1 after the moratorium took effect at the start of the pandemic when the economy contracted sharply and many Americans lost their jobs.

Now some lawmakers say the extensions are needed because of high inflation.

The extension, the fifth, would affect some 43 million Americans who have a combined student loan debt of more than $1.6 trillion. Some 7 million people have defaulted on their loans, meaning they haven’t made a payment for at least 270 days.

Interest on the loans was to remain at zero as long as the moratorium remains in effect.

Some Democratic lawmakers want Biden to forgive up to $50,000 of debt per debtor, but it’s unclear what support there is for such a move in Congress.

Some information in this report comes from The Associated Press.

USA voanews

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