According to sources familiar with the White House decision, the Biden administration expects to extend the moratorium on federal student loan payments until the end of August.
With this, the government extended the break for the sixth time. Alyssa Rodriguez admits, “So far so good, [but] not so much financially.”
Rodriguez is the second semester head of biology at Suffolk University in Boston. She is seeking a second $ 10,000 non-subsidized federal student loan.
“It puts a lot of pressure on me because, you know, I need to find a well-paying job that will help me year after year,” She said.
Over the past two years, subsidies and non-subsidized lending have stagnated during the epidemic. This means that Rodriguez has not yet been able to earn interest on her loan.
The White House hopes to extend the deadline by four months to help those in debt. “It would have lasted until I graduated, yes, I would have liked it, but I think we’ll see,” said newcomer Arthur Almeda.
The 18-year-old major in business economics at Suffolk University has been forced to take out student loans to help his parents with tuition.
“My parents both do two things – sometimes three – and my older sister goes to college, so they have to pay for both of our colleges, so they can’t do that. So we have to borrow,” said Almeda.
If the Biden administration moves forward with the expansion, it will not ask borrowers to repay student loans until August 31, and interest rates will remain at zero percent.
But the suspension order means the government is losing billions of rupees in revenue. “The government is not making that money, is it?” Meanwhile, the moratorium has freed millions of Americans from student loans.
“No matter who you talk to, having extra cash flow is really helpful, either to repay the loan faster or to meet your other financial goals,” Morong said. About 43 million Americans have approximately $ 1.6 trillion in student debt.