Name: The Trump administration extends the freeze on student loan payments through January
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The Trump administration extends the freeze on student loan payments through January

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Biden and Congress will have until January 31, 2021 to decide how to help over 40 million student loan borrowers.Education Secretary Betsy DeVos has on federal student loan payments due to the coronavirus pandemic through the end of January.The freeze on monthly payments and the accrual of interest on loans had been set to expire at the end of December, but Democrats and consumer advocacy groups had called for an extension, arguing that repayments should not begin again amid the presidential transition and that they should stay suspended, due to uncertainty over when another coronavirus relief bill may be passed by Congress.“The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted,” DeVos said in a statement Friday. “The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate. The Congress, not the executive branch, is in charge of student loan policy.”Student loan relief — which began in March through , and was then — has provided relief to over 40 million Americans as the coronavirus pandemic has wreaked havoc on the economy, and put a strain on household incomes across the nation. And the economic picture appears unlikely to brighten soon — more than , and a new found job creation slowing.The student loan freeze has modestly improved credit scores of student loan borrowers and helped borrowers in default avoid penalties for non-payment, such as wage garnishment, according to the .While DeVos called on Congress to take action on relief, both the executive and legislative branches of government have options available for extending relief., the coronavirus relief bill passed by House Democrats in May would keep the freeze in place until September 30, 2021, unless the unemployment rate improves. And a unveiled in the Senate this week potentially offers some kind of relief on payments through March.When President-elect Joe Biden takes office, he will have the option to extend the repayment moratorium through executive action just as the Trump administration did. But Democratic leaders, progressives, and many consumer advocacy groups are pushing for much more sweeping action on loan relief during Biden’s tenure: the outright cancellation of federal student loans.Some progressives, like Sen. Elizabeth Warren (D-MA), that the Higher Education Act gives the education secretary the “authority to begin to compromise and modify federal student loans,” meaning that the president has the legal power to cancel student loan debt unilaterally.As Vox’s Dylan Matthews , Senate Minority Leader Chuck Schumer and Warren have called on the Biden administration to for every borrower with federal student loans. (Federal student loans make up of outstanding student loan balances, as opposed to privately issued loans.)Biden has preferred more modest cancellation measures. He has expressed support for far more limited student loan relief — — but sources involved in his transition planning discussions that he prefers any cancellation measure to be authorized through congressional legislation, not executive action.If Democrats succeed in taking control of the Senate after — and therefore hold both chambers of Congress — there may be some more serious discussion of doing just that. But if Democrats fail to take control of the Senate in January’s runoffs, pressure on Biden to take executive action to forgive loans may intensify.Millions turn to Vox to understand what’s happening in the news. Our mission has never been more vital than it is in this moment: to empower through understanding. Financial contributions from our readers are a critical part of supporting our resource-intensive work and help us keep our journalism free for all.Understand how policy impacts people. Delivered Fridays.

Biden and Congress will have until January 31, 2021 to decide how to help over 40 million student loan borrowers.Education Secretary Betsy DeVos has on federal student loan payments due to the coronavirus pandemic through the end of January.The freeze on monthly payments and the accrual of interest on loans had been set to expire at the end of December, but Democrats and consumer advocacy groups had called for an extension, arguing that repayments should not begin again amid the presidential transition and that they should stay suspended, due to uncertainty over when another coronavirus...

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Political columnist and editor @MSNBC Daily. Say hello: zeeshan.aleem@nbcuni.com Sign up for my free politics newsletter: http://zeeshanaleem.substack.com/subscribe

Zeeshan Aleem

Vox is a liberal-leaning American news and opinion website owned by Vox Media. The website was founded in April 2014 by Ezra Klein, Matt Yglesias, and Melissa Bell, and is noted for its concept of explanatory journalism. Vox's media presence also includes a YouTube channel, several podcasts, and a show presented on Netflix.

The Trump administration extends the freeze on student loan payments through January

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