Biden extends student loan pause until 2022 – but Democrats still want him to cancel $50,000 debt entirely

JOE Biden has rubber-stamped plans to extend the pause on federal student loan payments until 2022 – yet Democrats say the measure “doesn’t go far enough”.

Payments were halted last year after Congress passed the CARES Act and were due to restart in September – but this has now been pushed back until January 31.

Yuri Gripas - Pool via CNP / MEGA

Joe Biden has extended the pause on student loan payments[/caption]

Biden’s administration has described this as the “final extension”, however.

Those who have borrowed money do not need to make payments during this time and interest will not be added onto the remaining balance.

“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” Education Secretary Miguel Cardona said in a statement.

“As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment.”

But some Democrats this isn’t enough as they called on the President to forgive $50,000 in student debt per borrower through an executive order. 

“While this temporary relief is welcome, it doesn’t go far enough,” Senate Majority Leader Charles Schumer, Sen. Elizabeth Warren and Rep. Ayanna Pressley said in a statement.

“Our broken student loan system continues to exacerbate racial wealth gaps and hold back our entire economy.”

The extension has been criticized by Republicans, with Rep Virginia Foxx branding it an “irresponsible delay”.

“his extension does a grave disservice to borrowers across the country, and our children will pay the ultimate price for this irresponsible delay,” she said.

“Secretary Cardona is using the permanent pandemic narrative to wield power rather than enact responsible solutions to help borrowers get back on track. I regret that Secretary Cardona did not show real leadership by working with Congress to transition responsibly the portfolio back into repayment by Oct 1 of this year.

“It is nothing less than a dereliction of duty.”

It comes after the Education Department last month canceled around $56million in student debt from some 1,800 borrowers.

Around $1.5billion of student loan debt has been wiped off by Biden’s administration in total.