After more than two years of COVID-19 emergency forbearance, federal student loan payments will begin on May 1. According to a new study by Data for Progress, most Americans believe the student loan payment halt should be prolonged until 2023.
Student loan interest to resume
Borrowers should expect to resume federal student loan payments, for student loan interest to resume accruing, and for wage garnishment to occur if their debts are in default. In light of this, a new Data Progress poll finds that most Americans want the suspension of student loan payments until December 31, 2022.
According to the poll, 59 percent of respondents want student loan payments to be delayed until December 31, 2022, while 33 percent oppose prolonging the pause beyond May 1, 2022. Thirty-five percent strongly support extending the student loan payment pause, while 24 percent support expanding the student loan payment pause somehow, Forbes posted.
Debtors need to start payments
Although extending the federal student loan payment freeze is popular, it’s unclear whether the Biden administration will do so again, which means that debtors with federal student loans can expect to begin payments in a few months.
According to the Education Department, the student loan payment moratorium has offered $5 billion in monthly debt relief to 41 million students. However, the Biden administration has stated that this is the final extension of student loan forbearance. The president said it needed the latest extension to handle the ongoing pandemic while bolstering economic recovery.
Democratic politicians praised the Biden administration’s decision to extend the pause for student borrowers, including Senator Elizabeth Warren and Senate Majority Leader Chuck Schumer. Many leftists also took advantage of the opportunity to urge President Obama to follow through on his campaign promise of canceling student loans nationwide, Fox Business reported.