Biden Still Considering Extension Of Student Loan Payments Pause, Psaki Says

White House press secretary Jen Psaki has indicated that President Joe Biden is considering a possible extension on the student loan freeze triggered by the COVID-19 pandemic.

During a press conference Tuesday, Psaki said Biden has yet to make a decision on the loans freeze, The Hill reported. While Psaki did say that it would likely be the last extension on the moratorium, her statement has raised hopes that students won't have to prepare payments by February.

Millions of students will be affected should Biden decide not to extend the loan freeze that is due to expire Jan. 31, especially at a time when the Omicron coronavirus variant is threatening the U.S. economy.

A spokesperson for the Education Department also said Tuesday that it is expecting the government to announce “whether to extend the pause further” sometime this week, NBC News reported. Earlier this month, Psaki said the administration was “still assessing the impact of the omicron variant, but a smooth transition back into repayment is a high priority.”

The student loans pause was first ordered by former President Donald Trump in March 2020. Biden first extended the order in January and again in August through the end of next month. Over the past several weeks, the Biden administration has faced increased pressure to extend the freeze, especially from Democratic House members who are anticipating another potential blow to the economy due to the Omicron variant.

Progressives and education activists have urged the president to forgo $50,000 in student loans per borrower by using executive power. An estimated 44 million Americans owe a combined $1.6 trillion in student debts.

Rep. Alexandria Ocasio-Cortez, D-N.Y., took to Twitter earlier this week to call on Biden to use his executive authority in addressing student loans. Ocasio-Cortez noted that “student loans will restart within a matter of weeks” and “working families could lose thousands of $/mo” with inflation hitting the U.S. economy.

“That alone is reason for @POTUS to act on student loans ASAP – w/ either moratorium or cancellation,” she said.

Sen. Elizabeth Warren, D-Mass., also said that forcing students to pay up will “be a hard blow to people who have struggled throughout this pandemic.”

Biden has said he would sign a bill that forgives up to $10,000 per borrower, but some observers argued that Congress will likely tank such a legislation as many lawmakers have expressed opposition to debt cancelation.