A group of 176 different organization and advocacy groups sent a letter to President Biden yesterday, calling on him to extend the student loan payment moratorium that is set to expire on August 31, saying that individuals are not “financially prepared” to resume making payments into a system “plagued by mismanagement, corruption, and abuse.”
A copy of the letter can be accessed by clicking here.
Student loan payments have been paused since the COVID-19 pandemic was declared back in March 2020. The pause has been extended several times with each of the last few pauses being declared the final one.
Restarting student loan payments as the Biden Adminstration is considering a broad cancellation of existing student loan debt would be confusing and complicated the groups said in their letter. At a time when inflation is causing necessities like food and gas to be “out of reach for many families, student loan debt relief would ease the financial pressure that so many Americans are feeling,” the groups wrote.
There has been much debate about the impact that canceling student loan debt would have on the economy. Some argue that it would provide much-needed relief to millions of individuals and allow that money to be spent in other areas, like buying homes and cars. A number of reports have indicated that student loan debt is keeping individuals from making big purchases and starting families. On the other hand, critics of the idea have said that canceling student loan debt would not pump as much money as people think back into the economy, and would not address the root-cause of the problem — the affordability of post-secondary education in America. Members of Congress have even introduced legislation
