U.S. Sen. Elizabeth Warren (D-MA), Majority Leader Sen. Chuck Schumer (D-NY) and U.S. Reps. Ayanna Pressley (D-MA) and Joe Courtney (D-CT) led colleagues in forwarding correspondence to President Joe Biden, advocating extending the pause on federal student loan payments until at least March 31, 2022.
The legislators detailed how Biden extended the pause, originally established under the Coronavirus Aid, Relief and Economic Security (CARES) Act, through Sept. 30, 2021, for 87 percent of borrowers with direct federal loans.
Under the legislation, the U.S. Department of Education has provided approximately $72 billion in relief on student loan interest alone. The funds have been reinvested into the economy.
Meanwhile, the legislators said student loan payments are currently scheduled to resume on Oct. 1, 2021, which could create an unnecessary drag on the economic recovery, especially with unemployment benefits also set to expire in September.
“Before the pandemic, the average student loan payment was between $200 and $299 per month – a substantial part of a household budget and money that is desperately needed for basic needs,” the lawmakers wrote.
Warren said Biden should cancel student debt, but in the meantime, should extend the payment pause so that borrowers are not hurt.
“We urge you to act quickly to extend the current pause on payments and interest so that borrowers are not penalized, and student debt payments do not drag down the pace of our economic recovery,” the legislators concluded. Specifically, we ask that you extend the pause by at least six months-until March 31, 2022-or until the economy reaches pre-pandemic employment levels, whichever is longer.”