Biden Suspend Federal Student Loan Payments and keeps interest rate at 0%

President Joe Biden has tells Education Department to pause payments of student loan relief until October. The request for the extension was part of a series of actions he took on his first day as president.

This is in fulfilment of Biden’s pledge to give borrowers some breathing room as the economy struggles to find its footing.

“Too many Americans are struggling to pay for basic necessities and to provide for their families,” the Education Department said in a statement Wednesday. “They should not be forced to choose between paying their student loans and putting food on the table.”

Biden has also announced support for a range of policy plans that require a mix of executive authority and legislation from Congress.

Borrowers, who owe a collective $1.5 trillion, would not be required to make payments on their federal student loans, their loans would not accrue any interest and all debt collection activity would halt through September.

He has publicly supported canceling up to $10,000 in student loan debt for each borrower in response to the coronavirus pandemic, but that policy would apply only to federal student loans held by the Department of Education.

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Biden has proposed free undergraduate tuition for students who meet certain requirements. Your family’s income would have to be below $125,000 per year to qualify, and the plan would apply only to two- and four-year public colleges and universities, not private schools

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