In a letter sent on June 30, a team of 180 national and state agencies requested President Biden to extend the student loan break, which is due to end on August 31 in just two months.
The repayment break, which was first enacted in March 2020 and has been extended more than once since, prevented millions of federal student borrowers from repaying their loans during the epidemic. Biden says he plans to cancel at least some student loans, but he has not yet unveiled a final proposal.
Biden is expected to cancel at least $ 10,000 in student loans to borrowers earning less than $ 150,000 by the end of the summer. The administration has not yet indicated whether there will be another extension for the payment break, but many agencies in favor of debt forgiveness argue that if the break is not extended, the forgiveness must come before payments begin in August.
“Our firms request you to cancel strong student loans that are not tested and do not require an opt-in to participate and to fully implement this policy before any student loan bill is due,” the letter said.
The letter added, “Our organizations enthusiastically support the widespread cancellation of student loans because it will provide desperately needed relief for millions of people and in the process strengthen the economy and our nation. We also understand that in times of very high inflation, The financial pressures that many Americans are experiencing as families move out of reach will reduce student debt relief. “