What’s next for student loan debt? – NBC 5 Dallas-Fort Worth
Most people can quote, off the top of their mind, how much they owe in student loans.
“We have 45 million Americans who have student loan debt,” said Kat Welbeck, director of advocacy and civil rights for the Student Borrower Protection Center. “Federal student loan payments, the vast majority of student loan borrowers have federal student loans, have been suspended since March 2020. So there have been several payment suspension extensions along the way.”
Welbeck explained that the most recent extension dates back to December 2021 and is set to expire on May 1.
“We think this payment break is really important. It buys time for the administration to deliver on its promise to fix our broken student loan system,” Welbeck said. “President Biden promised to deliver debt relief in the form of student loan forgiveness and then fix our broken student loan programs.”
Groups like Student Borrower Protection are lobbying for student loan forgiveness.
“We’re asking, please don’t kick people back into a broken system until we fix it when we have that moment where we can fix it where people aren’t making payments either,” Welbeck said. .
Welbeck said there has been progress with the changes.
“For example, for people who work in the civil service, there is a civil service student loan forgiveness and we have seen the administration make changes to this program during this payment pause period,” Welback said. . “We’ve seen them take action for borrowers who have been defrauded by for-profit schools.”
As millions of Americans await news on the future of their student debt, there was no clue in President Biden’s 2023 budget proposal continuing the uncertainty of what will happen to their loans.
Despite the omission of any information about the payment pause from Biden’s budget, the administration has suggested it is considering delaying the resumption of payments beyond May, when they are currently expected to resume.
White House Chief of Staff Ron Klain said earlier this month that Biden wanted to make the decision on debt cancellation before reactivating payments.