HomeSocietyFederal student loan payment suspension seems to be huge boon for families

Federal student loan payment suspension seems to be huge boon for families

On Tuesday, Vice President Joe Biden extended the federal student loan payment moratorium for an additional six months.

Vice President Biden has assured Americans with student loan debt that their payments will not resume in January.

This extension will allow the courts to review the cases that have been filed contesting the debt relief scheme.

To this purpose, the Secretary of Education has extended the moratorium on student loan payments until June 30, 2023, giving the Supreme Court time to hear the issue during the current term.

Once the suspension is lifted, payments will resume in 60 days, as Biden promised. Rep. Cori Bush, who tweeted her support for the move, argued that the president already has the authority to forgive student loans.

Keep employing all available means of delivery.” Webster University’s Center for Innovation Director Joe Roberts said many students and alumni are appreciative of the break.

If you don’t want to put money toward paying off your student loans, you can put that money toward something else. That’s the first thing they will notice,” Roberts added.

With the holidays quickly approaching, he noted the usefulness of this. They were estimating that a traditional Thanksgiving dinner for a family of two or three costs around $65 to $70.

Consequently, that’s a big jump from the previous year. They can now adjust for inflation, so the prospect of not having to resume payments in January is a relief,” Roberts said.

In the days leading up to the announcement, Roberts said, many people received emails stating they had been approved to receive anywhere from $10,000 to $20,000 in debt relief but that the funds were subject to certain conditions owing to pending lawsuits.

Roberts said that “the average debt is roughly $25,000 to $27,000,” so a reduction in debt by forgiving up to $20,000 would have a significant effect.

Roberts acknowledged that this period of uncertainty is difficult for many people, but he advised trying to put money aside so that the pressure wouldn’t be as great when payments were once again due.

 

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