Biden Considers Student Loan Freeze Extension Amid Progressive Pressure

After the Build Back Better plan imploded, President Joe Biden may throw progressives a bone by extending the freeze on student loan payments.

During a White House press conference on Tuesday, press secretary Jen Psaki said that the president has not yet decided if the freeze on student loan debt payments and interest accrual will extend past the January 31 deadline. In a statement to Insider, an Education Department spokesperson said that a decision on whether to continue the freeze will be announced later this week.

“Since Day One of the Biden Administration, we’ve been hard at work delivering meaningful relief to student loan borrowers,” the spokesperson said.  That started with an extension of the pause on federal student loan repayment until January 31, 2022.”

“To date, the pause has saved 41 million borrowers tens of billions of dollars. Later this week, we will be announcing whether to extend the pause further,” the statement added.

The White House mulling the freeze comes after progressives put considerable pressure on the administration after Jen Psaki said in early December that “a smooth transition back into repayment is a high priority” for the president.

“This is going to be a hard blow to people who have struggled throughout this pandemic. It’s the wrong move,” Sen. Elizabeth Warren (D-MA) said last week.

On Tuesday, as news spread of Biden’s reconsideration, Elizabeth Warren tweeted: “Restarting student loan debt payments would take more than $85 billion dollars out of our economy next year. We’re still in a pandemic and people are still struggling. @POTUS shouldn’t restart payments and should use his authority to #CancelStudentDebt.”

Restarting student loan debt payments would take more than $85 billion dollars out of our economy next year. We're still in a pandemic and people are still struggling. @POTUS shouldn’t restart payments and should use his authority to #CancelStudentDebt.

— Elizabeth Warren (@SenWarren) December 21, 2021

According to The Hill, progressive Democrats have pleaded with President Biden to forgive up to $50,000 per student borrower through executive action without congressional approval. Up to 44 million Americans owe a combined total of $1.6 trillion in student loans.

“Biden has asked administration officials to review his legal authority to forgive student debt through executive order and has said he would sign a bill passed to forgive up to $10,000 per borrower,” noted The Hill. “Even so, Congress is highly unlikely to pass a debt forgiveness bill.”