Student loan repayment break | The voice
Due to the COVID-19 pandemic where many current and former students have lost their income, the United States Department of Education has temporarily suspended student loan repayments, collections, and interest. On April 6, 2022, the decision was made to suspend refunds again in an effort to help those who are still struggling financially due to the financial fallout of a global pandemic.
Student loan repayments are suspended until August 31. The pause comes amid continued demands for student loan forgiveness, an effort that has captured national attention since President Joe Biden took office in 2021. As part of his election campaign, President Biden pledged to cancel all student loans, and that would be a top priority. However, the promise has largely gone unfulfilled, as many students feel their voice is not being heard.
Some students continued to use the Internet to demand the cancellation of student loans. A change.org petition has now received nearly 1.5 million requested signatures, a sign that many Americans believe student loans should be forgiven altogether. The petition claims that $1.3 trillion in federal student loans could be canceled without any balances being added to the national debt and without any money being taken from the US Treasury. In total, Americans owe about $1.7 trillion in direct student loans and another $4.4 billion in Perkins loans. Nearly 47 million Americans have some form of student loan debt that they need to pay off. If a total cancellation of all student loans becomes a reality, it would benefit millions of Americans.
While pauses on student loans have helped millions of Americans, many still worry about how they will make their payments when repayments resume. There may be another pause in refunds, but only time will tell.