Mon. Dec 4th, 2023
Democrat urges Biden pause student loan payments

Rep. Ayanna Pressley, D-Mass., known as on President Joe Biden to halt pupil mortgage funds if the federal government shuts down within the coming days.

Congress has till Saturday to succeed in an settlement to move a sequence of 12 appropriations payments to fund the federal government through the subsequent fiscal 12 months to keep away from a shutdown, which might have a widespread influence on hundreds of thousands of People. Home Republicans stay divided on the payments, with the convention’s extra conservative members retaining help for concessions on social points and spending cuts. Home Speaker Kevin McCarthy should attain a deal that might concurrently fulfill these lawmakers whereas additionally getting by the Democratic-controlled Senate in simply days, elevating issues a couple of potential shutdown.

The approaching pause will start on October 1, which means it should coincide with the resumption of pupil mortgage funds after being paused for greater than three years as a result of COVID-19 pandemic. Greater than 45 million People are set to begin repaying these loans subsequent month as progressives press Biden to do extra to pause or cancel the funds as different financial measures stay stagnant.

The closure might end in 90% of Training Ministry workers being furloughed, elevating issues that mortgage repayments might be disrupted.

Democrat urges Biden to halt student loan payments
President Joe Biden is photographed talking in New York Metropolis on September 19, 2023. Rep. Ayanna Pressley, a Massachusetts Democrat, urged the Biden administration to halt pupil mortgage funds as a authorities shutdown looms.
Jim Watson/AFP through Getty Photographs

Pressley, who represents Massachusetts’ seventh Congressional District together with massive swaths of Boston and its suburbs, on Wednesday issued a press release urging the Biden administration to take motion on pupil mortgage funds earlier than the shutdown.

“The pause on pupil mortgage funds has been a lifeline for debtors throughout the nation,” Pressley wrote. “As we stare at a crippling Republican authorities shutdown, it’s abundantly clear that pupil mortgage funds mustn’t resume on October 1st.”

“Placing debtors again into compensation by dangerous religion mortgage servicers and an understaffed Division of Training is a recipe for catastrophe and would severely undermine the progress now we have made to advance financial fairness for pupil mortgage debtors,” she continued.

Pressley stated the Biden administration ought to “utterly halt pupil mortgage funds and curiosity accrual” in gentle of the potential shutdown.

Newsweek I reached out to the White Home for remark through e-mail on Wednesday.

White Home press secretary Karine Jean-Pierre stated throughout a press convention on Monday that the shutdown might complicate compensation of pupil loans, particularly if the shutdown lasts a very long time, CNBC reported.

“If Republicans in Congress go down this path of shutting down the federal government, we count on main actions on federal pupil support to proceed for 2 weeks,” she stated. “Nonetheless, if the closure is extended (it) might considerably disrupt the return to compensation efforts.”

Throughout earlier shutdowns, the Division of Training has put in place contingency plans suggesting that some officers who administer pupil mortgage applications will proceed to work to help debtors. Staff who course of funds and handle mortgage disbursement programs have additionally been retained on this emergency plan.

“Applications with obligatory funding could make commitments and funds through the closure. Examples of those applications embody Pell Grants and Federal Direct Pupil Loans,” 2021 to divide Learn the emergency plan.

The federal authorities additionally makes use of exterior contractors for pupil support operations, which in principle would decrease any potential disruptions.

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