Cardona says Biden administration will announce decision on student loan payments next week

(The Hill) — Education Secretary Miguel Cardona said Sunday that the Biden administration is expected to announce a decision on whether to extend a pause on federal student loan debt next week, until the August 31 deadline when the current moratorium on loan repayments expires.

Cardona told NBC’s “Meet the Press” moderator Chuck Todd that the announcement was imminent, but declined to share any further details.

“We know that August 31 is a date when a lot of people are waiting to hear something,” the secretary said. “We talk about it daily, and I can tell you the American people will hear it by next week.”

Last week, Cardona announced that a similar announcement would be coming soon. It is not yet known if the administration is set to extend the freeze on student loan repayments and accrued interest or if the Ministry of Education will also announce a more permanent solution, such as the cancellation of certain debts by borrower. .

The Biden administration has come under pressure from some Democratic lawmakers to forgive up to $50,000 in debt per borrower. The president has championed debt cancellation up to $10,000, but no official announcement has been made on debt cancellation.

The Department of Education has already made progress in canceling student loan debt, which is estimated at $1.7 trillion spread over 45 million Americans.

The Biden administration authorized $32 billion in student loan relief for more than 1.6 million borrowers, mostly students who were defrauded or misled by schools or through the rebate program Public Service Loan (PLSF), which cancels the debt of those working in the public service or other qualifying jobs.

Cardona said Sunday that the PSLF has forgiven borrowers more than $10 billion so far under the Biden administration.

“The civil service loan forgiveness has been broken,” he said. “We fixed the problem so that our teachers, our nurses, could get loan forgiveness immediately.”


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