By: Nicholaus Perry, Reporter
OMAHA, Neb. – On Wed. April 6, The Biden-Harris Administration extended the student loan pause until Aug. 31 of this year.
As Covid-19 hit the United States economically and the recent conflict in Ukraine, inflation continues to rise in the United States.
To help keep more money in US citizens’ pockets that used federal loans at a public college, the U.S department of education has now extended student loan re-payment until Aug. 31, 2022.
Student federal loan borrowers won’t have to start repaying their loans until Aug.31 of this year along with a 0% interest rate until that time. There will also be stopped collections on defaulted loans.
“That additional time will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs,” said President Biden in a statement earlier this week.
“I’m saving for working on finishing the basement and that type of thing. It’s just helping me to honestly have more money in my pocket to be able to get this project on the road quicker,” Iowa State Graduate, Dr. Noty said.
Business Manager at Hy-Vee, Jesse Gillette, said the freeze will impact students
“I think it will help if they’re paying on car loans, or if they’re trying to find a place to live,” he said.
As the loan freeze slowly pushes to the final day, many citizens and the Democratic party continue to push President Biden to dismiss a sum of college debt relief for these federal loan borrowers.
“If we decided as a country that the economic impact of forgiving 10, 50, whatever amount of student debt would impact the economy that much, then I think it might be worth talking about,” Noty said.
It is still unclear if another freeze after the seventh extension will come after August or if any number of student debt relief is to be dismissed from federal loan borrowers.
