Press Releases
With Student Loan Payments Set to Resume, Pingree Calls on Biden to Extend PauseThe pause on student loan payments is set to expire at the end of August despite repeated reports and surveys concerning whether borrowers will be able to pay
Washington,
August 1, 2022
Congresswoman Chellie Pingree (D-Maine) and dozens of House Democrats are calling on President Joe Biden and U.S. Education Secretary Miguel Cardona to extend the pause on student loan payments, which is set to expire on August 31. Payments have been paused for more than two years as borrowers across the U.S. face continued financial strain due to the COVID-19 pandemic. “Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and health care—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide,” the Members wrote. Members said resuming student loan payments now—particularly as food, gas, and childcare costs remain high—"would further complicate administrative actions already underway or contemplated by the Department—which could contribute to unnecessary confusion for borrowers in the upcoming months.” Full text of the letter is available below and online here. In December 2021, Pingree and her colleagues successfully urged President Biden to continue to waive interest on federal student loans when the forbearance period for student loans was set to expire in January Pingree is a co-sponsor of the Zero-Percent Student Loan Refinancing Act, which would allow Americans with student loans to refinance to an interest rate of 0% until December 31, 2024, giving them the same opportunity to take advantage of the current low-rate environment that so many borrowers in other sectors of the economy have utilized. -- Dear President Biden and Secretary Cardona, In roughly 35 days, on September 1, 2022, tens of millions of federal student loan borrowers are scheduled to resume payments. Despite repeated reports and surveys concerning whether borrowers will be able to pay, we understand the Administration is considering restarting student loan payments at the end of August. We write today to urge you to extend the pause on student loan payments, given the numerous economic issues facing borrowers across the nation, as well as administrative actions in process by the Department of Education. For over two years, the Department has provided critical flexibility to millions of federal student loan borrowers by pausing payments, as many have struggled during the COVID-19 pandemic. This much needed pause has helped many borrowers to keep a roof over their heads, secure childcare, and purchase food, health care, and medicine during the course of a pandemic responsible for the deaths of more than 1 million people in the U.S. For the first time, many borrowers have had the opportunity to pay down debt, open a savings account, purchase a home, and save for retirement—none of which would have been possible without the payment pause. Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and health care—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide. Despite significant decreases over the last month, gas prices are still high, and many borrowers still have to pay exorbitant amounts each week in order to commute to their jobs. Food prices remain high, as suppliers contend with ongoing supply chain issues and the war in Ukraine. We still have a significant childcare crisis throughout the country, which has caused already-high costs to spike to 40% of their pre-pandemic levels. Low-income borrowers, Black and Brown borrowers, and women borrowers still face severe financial hardships as COVID-19 continues to infect individuals throughout the country and exacerbate existing inequities. Moreover, resuming student loan payments at this moment would further complicate administrative actions already underway or contemplated by the Department—which could contribute to unnecessary confusion for borrowers in the upcoming months. Currently, many borrowers are in limbo as they await upcoming actions from the Department or their federal student loan servicer—either through the Public Service Loan Forgiveness (PSLF) waiver or through the one-time account adjustments announced by Ed on April 19, 2022 that would count past periods of forbearance or deferment. Accordingly, we ask that the Administration continue to keep federal student loan payments paused. ### |