An email from the Department of Education obtained by Nation Public Radio (NPR) indicates that the Biden administration may extend the freeze on student loans, started under the Trump administration, for a fourth time. The email directed loan servicing companies not to reach out to borrowers about the May 1 deadline, despite these companies being required to give a month’s notice before repayment begins.
The email follows on the heels of an appearance by White House Chief of Staff Ron Klain on the podcast Pod Save America where he hinted that it was possible the repayment pause could be extended beyond the May 1 deadline.
There is no doubt that the motivation behind the delay in restarting the debt payments is a cynical political calculation. The Democratic Party is planning to use the delay to posture as proponents of some form of debt forgiveness in the midterm elections.
While campaigning for president Biden declared repeatedly that “we should forgive a minimum of $10,000/person of federal student loans, as proposed by Senator Warren and colleagues.”
However, those who hold student loan debt must be warned, the current proposal under consideration for “forgiveness” is actually a restructuring of student debt, a far cry…
