These executive actions relied on the Higher Education Relief Opportunities for Students Act of 2003, known as the HEROES Act, which provides executive authority to modify the terms of student loans for those who are affected by “a war or other military operation or national emergency.” From the time he took office in January 2021 until the end of 2022, President Biden extended the payment pause six more times. The Trump administration extended the payment pause until December 31, 2020, and then again until January 31, 2021. Secretary of Education to extend payment suspension on most federal student loans until Septemin the Coronavirus Aid, Relief and Economic Security Act (CARES). With the declaration of the COVID-19 pandemic as a national emergency in March 2020, then-President Trump used executive authority to waive interest and suspend student loan payments on all government-held student loans, effectively allowing penalty-free forbearance. An unhealthy marriage: Student loan debt forgiveness and the payment pause ![]() Other borrowers-particularly those who were struggling with student loan payments before the pandemic-will face significant financial hardship with the restart of payments. Doing so would not only mitigate hardship associated with the restart of payments, but it would also contribute to structural improvements in the administration and integrity of the federal student loan program. For this reason, helping eligible borrowers enroll in existing programs that could help protect them from financial distress when payments resume needs to be the immediate priority for the Department of Education, along with the legislative branch of government. Other borrowers-particularly those who were struggling with student loan payments before the pandemic-will face significant financial hardship with the restart of payments.įor borrowers who are likely to struggle, relief through the loan cancellation plan proposed by the Biden administration is by no means assured while a further extension of the payment pause appears unlikely given ongoing litigation. ![]() Some student loan borrowers have high incomes and never suffered wage losses due to the pandemic, and rising wages and low unemployment mean that many borrowers have recovered from any short-term financial effects of the pandemic.
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