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What's next for student loan debt: President Biden has 10 days to extend moratorium

Biden Student Loans
Posted at 7:48 AM, Aug 22, 2022
and last updated 2022-08-22 07:48:23-04

(LEX 18) — Time is running out for President Joe Biden to make a decision on the on-going pause on federal student loans. The freeze is set to expire at the end of August.

Payments on most federal student loans have been put on hold since March of 2020-when the COVID-19 pandemic began.

President Biden has extended that pause four times, mostly recently in April.

With only ten days until the pause is set to expire, it's leaving many wondering what comes next if another extension does not happen.

Now the other option people are looking toward rather than an extension of the moratorium: debt forgiveness.

President Biden has canceled more than $32 billion in student debt since taking office.

It's important to note that most of the debt President Biden has forgiven to this point has been for people with disabilities and students who were given financial misinformation by the schools they attended.

It is very much a waiting game for borrowers right now. It's not a concrete date or time but education leaders are giving us some idea of a move being made.

U.S. Education Secretary Miguel Cardona spoke on meet the press recently, saying there have been daily talks about the student loan moratorium and says American people should hear a plan within the next week.