(GoRealNewsNow.com) – In a move that most Americans believe is long overdue, the Biden administration is finally getting ready to resume federal student loan payments, which were put on hold during the COVID-19 pandemic.
Education Secretary Miguel Cardona informed the Senate Appropriations Committee in a hearing on Thursday that the government is preparing to restart the payment process.
During the hearing, Cardona was asked about a statement made by White House press secretary Karine Jean-Pierre earlier in the week about the debt ceiling. Jean-Pierre said, “If you buy a car, you are expected to pay the monthly payments. If you buy a home, you are expected to pay the mortgage every month. That is the expectation.” Cardona agreed with her statement.
Republican Senator Katie Britt from Alabama chimed in, saying, “That same logic must apply to student loans.” Cardona replied, “We agree and we’re preparing to restart repayment because the emergency period is over, and we’re preparing our borrowers to restart.”
Cardona also mentioned the HEROES Act, which the Biden administration believes gives the Education Secretary the power to reduce or eliminate federal student loan debt obligations. He said it “provides me the opportunity to create a waiver for those who are impacted significantly by the pandemic — very similar to small businesses the year before, where Congress provided a little bit of support.”
The Supreme Court is currently reviewing a lower court’s decision that stopped Biden’s student debt forgiveness plan. Payments will resume either 60 days after June 30 or 60 days after the court’s decision, depending on which comes first.
Barry Coleman, Vice President of Counseling and Education Programs at the National Foundation for Credit Counseling, advised borrowers not to “wait until this case is resolved. Don’t wait until you know just before payments are due again, start planning right now.”
Do you think it’s time for student loan debtors to start paying up? What is your opinion? Share your view by emailing [email protected]. Thank you.
President Joe Biden's administration is "preparing to restart" the payment of federal student loan debt, which was paused during the COVID-19 pandemic. https://t.co/ff0wzFjdfk
— NEWSMAX (@NEWSMAX) May 12, 2023