Once he takes office Joe Biden will ask Congress to immediately cancel $ 10,000 of student debt for all borrowers, in support of the economy that has been affected by Covid-19 , David Kamin of the transition team revealed this Friday .
He commented that Biden will also order the Department of Education to extend the payment pause that is scheduled to expire this month , as well as the interests that affect millions of Americans with federal student loans .
Kamin added that the next administration will improve income-based payment programs, in addition to “fixing and expanding loan forgiveness programs for those with public service jobs .”
No further details were released about the duration of the extension and whether all types of debt collection will be suspended , but it is true that from the first day that President Biden arrives at the White House, he will make decisions in this area, as he promised. in campaign .
The issue is very relevant because the financial aid package approved in December did not include an extension of the payment pause for student loan debtors , in force since March and expiring at the end of the month .
The news is encouraging for many borrowers who have been unable to make their payments . A Pew survey revealed that about 90% of federal student loan applicants have taken advantage of the government’s option to pause their payments during the pandemic and that 6 in 10 borrowers said it would be difficult for them to start paying. your student loan bills again in the next month .
We will have to wait for Biden to assume the presidency to find out how this support is approved, if it is done through Congress or through executive action .