Resuming student loan payments would force millions of borrowers to choose between paying their loans or putting a roof over their heads, food on the table, or paying for childcare and health care
Washington, D.C. — Ahead of the federal student loan payment pause set to expire at the end of August, U.S. Senator Reverend Raphael Warnock (D-GA) joined a bicameral group of 100 lawmakers in the Senate and House in urging the Biden Administration to extend the student loan payment pause beyond August 31, 2022. This effort comes on the heels of several news reports that the Biden Administration has not made a final decision about whether to extend the student loan payment pause – a decision that will affect millions of student loan borrowers.
“For over two years, the Department has provided critical flexibility to millions of federal student loan borrowers by pausing payments, as many have struggled during the COVID-19 pandemic. This much needed pause has helped many borrowers to keep a roof over their heads, secure childcare, and purchase food, health care, and medicine during the course of a pandemic responsible for the deaths of more than 1 million people in the U.S.,” wrote Senator Reverend Warnock and other lawmakers to President Joe Biden and Education Secretary Miguel Cardona. “For the first time, many borrowers have had the opportunity to pay down debt, open a savings account, purchase a home, and save for retirement—none of which would have been possible without the payment pause.”
The lawmakers emphasized how resuming student loan payments would force millions of borrowers to choose between paying their loans or putting a roof over their heads, food on the table, or paying for childcare and health care—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide.
“Despite significant decreases over the last month, gas prices are still high, and many borrowers still have to pay exorbitant amounts each week in order to commute to their jobs. Food prices remain high, as suppliers contend with ongoing supply chain issues and the war in Ukraine. We still have a significant childcare crisis throughout the country, which has caused already-high costs to spike to 40% of their pre-pandemic levels,” the lawmakers added. “Low-income borrowers, Black and Brown borrowers, and women borrowers still face severe financial hardships as COVID-19 continues to infect individuals throughout the country and exacerbate existing inequities.”
The lawmakers concluded by pointing out how resuming student loan payments at this moment would further complicate administrative actions already underway at the U.S. Department of Education. All federal student loan borrowers are in limbo as they await upcoming actions from the Department of Education or their federal student loan servicer.
Senator Reverend Warnock has heard from countless Georgians about how onerous student loans are hurting their pockets and making it harder to navigate our changing economy. Senator Warnock believes that significantly cancelling student debt is a much-needed and would provide the most help for students who graduated from institutions like trade schools and community colleges, and countless borrowers who weren’t able to finish their degree.
Senator Reverend Warnock has long advocated to address the student loan crisis. Senator Warnock reminded President Biden in the Oval Office on May 19 that student debt relief cannot come soon enough. Senator Warnock told Morehouse graduates during his commencement address on May 15 that he was pushing President Biden to cancel some student loan debt. In April, Senator Warnock signed onto a letter with over 100 lawmakers calling on the Biden Administration to extend a pause on payments and cancel student debt. Last month, at the Senator’s urging, President Biden announced an extension of the payment pause on federal student loans through Aug. 31; the moratorium on student loan payments was previously set to expire on May 1. The Administration additionally announced that the Department of Education will erase the defaults of all borrowers covered by the pandemic-related pause, which Senator Warnock has vocally pushed, as he co-led a push with Senator Warren in April 2021 asking Education Secretary Cardona to do just that. Senator Warnock joined his colleagues in requesting additional details from the Department of Education on its plans to provide student borrowers a “fresh start.” At a March Democratic retreat, the Senator pressed the President to cancel student debt.
Find a copy of the letter HERE and below.
Dear President Biden and Secretary Cardona,
In roughly 35 days, on September 1, 2022, tens of millions of federal student loan borrowers are scheduled to resume payments. Despite repeated reports and surveys concerning whether borrowers will be able to pay, we understand the Administration is considering restarting student loan payments at the end of August. We write today to urge you to extend the pause on student loan payments, given the numerous economic issues facing borrowers across the nation, as well as administrative actions in process by the Department of Education.
For over two years, the Department has provided critical flexibility to millions of federal student loan borrowers by pausing payments, as many have struggled during the COVID-19 pandemic. This much needed pause has helped many borrowers to keep a roof over their heads, secure childcare, and purchase food, health care, and medicine during the course of a pandemic responsible for the deaths of more than 1 million people in the U.S. For the first time, many borrowers have had the opportunity to pay down debt, open a savings account, purchase a home, and save for retirement—none of which would have been possible without the payment pause.
Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and health care—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide. Despite significant decreases over the last month, gas prices are still high, and many borrowers still have to pay exorbitant amounts each week in order to commute to their jobs. Food prices remain high, as suppliers contend with ongoing supply chain issues and the war in Ukraine. We still have a significant childcare crisis throughout the country, which has caused already-high costs to spike to 40% of their pre-pandemic levels.Low-income borrowers, Black and Brown borrowers, and women borrowers still face severe financial hardships as COVID-19 continues to infect individuals throughout the country and exacerbate existing inequities.
Moreover, resuming student loan payments at this moment would further complicate administrative actions already underway or contemplated by the Department—which could contribute to unnecessary confusion for borrowers in the upcoming months. Currently, many borrowers are in limbo as they await upcoming actions from the Department or their federal student loan servicer—either through the Public Service Loan Forgiveness (PSLF) waiver or through the one-time account adjustments announced by Ed on April 19, 2022 that would count past periods of forbearance or deferment.
Accordingly, we ask that the Administration continue to keep federal student loan payments paused.
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