US Education Department extends student loan payment pause until January

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The US Department of Education announced on Friday that it would extend its pause on student loan payments until 31 January 2022.

Education Secretary Miguel Cardona said in a statement that doing so would allow for people to transition back into paying loans.

“It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education,” Mr Cardona said.

Student loan payments were set to resume on 30 September. The department began the pause on student loans and interest during the Trump administration under then-Secretary Betsy DeVos because of the coronavirus pandemic. Congress then passed legislation that encoded it into law and then the Trump administration extended the suspension in student loan payments through January of 2021.

The Biden administration extended the pause until September of this year.

Some Democrats have called on President Joe Biden to go further. Upon the announcement of the pause, Senate Majority Leader Chuck Schumer, Sen Elizabeth Warren and Rep Ayanna Pressley called on Biden to cancel $50,000 of student debt.

“While this temporary relief is welcome, it doesn’t go far enough,” the statement said. “Our broken student loan system continues to exacerbate racial wealth gaps and hold back our entire economy.”

The group of Democrats said it is well within the president’s power. But House Speaker Nancy Pelosi said last week that the president doesn’t have the authority to do so.

“He can postpone, he can delay, but he does not have that power,” she said in a news conference. “That would best be an act of Congress.”