Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Federal student loan repayments to restart, education secretary confirms

Federal student loan repayments to restart, education secretary confirms

'We're preparing our borrowers to restart' federal student loan repayments, Education Secretary Miguel Cardona says

The Education Department is "preparing to restart" federal student loan debt repayments after a three-year pause now that the COVID-19 pandemic emergency has ended, Secretary Miguel Cardona told lawmakers this week.

Cardona revealed the administration's intentions at a Senate Appropriations Committee hearing on Thursday, when Sen. Katie Britt, R-Ala., asked him why the government should forgive student loan borrowers when President Biden is demanding that Congress pay its debt obligations in arguments with Republicans over the debt limit.

Britt, a first-term senator, cited remarks about the federal debt made Monday by White House press secretary Karine Jean-Pierre and asked if Cardona agreed.

"If you buy a car, you are expected to pay the monthly payments. If you buy a home, you are expected to pay the mortgage every month. That is the expectation," Jean-Pierre said.

Education Secretary Miguel Cardona testifies during the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies hearing on the "FY2024 Request for the United States Department of Education," in Rayburn B


Cardona said he agreed with the White House. Britt then said, "that same logic must apply to student loans.

"We agree, and we're preparing to restart repayment because the emergency period is over, and we're preparing our borrowers to restart," Cardona responded.

He added that the HEROES Act, which the Biden administration has controversially argued empowers the secretary of education to reduce or eliminate federal student loan debt obligations, "provides me the opportunity to create a waiver for those who are impacted significantly by the pandemic — very similar to small businesses the year before, where Congress provided a little bit of support."

Cardona did not provide Congess with a specific timeline for the administration's plan when asked.

President Joe Biden speaks about student loan debt forgiveness in the Roosevelt Room of the White House on Aug. 24 in Washington.


Politico reported earlier this month that the Department of Education issued guidance to student loan companies last November about collecting federal student loan payments once payments resume sometime in October this year.

Student loan servicers are reportedly required to alert borrowers of payment resumption after Aug. 31.

Federal student loan payments were paused and interest rates reduced to 0% in March 2020, when President Donald Trump signed the CARES Act in response to the COVID-19 pandemic. The student loan pause has since been extended multiple times by the Biden administration.

Biden, who is running for re-election, has proposed forgiving up to $10,000 in federal student loan debt and up to $20,000 for those who received Pell Grants — a plan that is currently being challenged in court. If Biden is permitted to carry out his plan, he could eliminate a total of $441 billion in student debt from more than 40 million borrowers, according to the Federal Reserve Bank of New York.

Members of the public walk by as student loan debt holders take part in a demonstration outside the White House staff entrance to demand that President Biden cancel student loan debt July 27, 2022, at the Executive Offices in Washington, D.C. 

Students study in the Rice University Library on Aug. 29, 2022, in Houston. 


Federal student loan debt stands at $1.635 trillion and is carried by more than 43.8 million borrowers, according to EducationData.org. Should the Supreme Court give Biden the green light for relief, those eligible would need to have individual incomes of less than $125,000 or $250,000 if they’re married couples.

The White House announced last November that federal student loan payments would resume 60 days after the Education Department is allowed to initiate its student loan forgiveness plan or after Supreme Court litigation is resolved – whichever comes first.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Historic Papal Conclave Set to Commence in Rome
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
EU Hits TikTok with €530 Million Fine Over China Data Transfers
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
Warren Buffett to Step Down as Berkshire CEO After Nearly 60 Years
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
U.S. and Ukraine Poised to Sign Strategic Critical Minerals Deal Amid Geopolitical Shifts
Spain Restores Power After Unprecedented Nationwide Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
Greek Christians Celebrate Easter in Thessaloníki
US Federal Reserve Chair Issues Warning on Tariff Impact
China, China, China!
Pope Francis Makes Brief Appearance at Easter Sunday Mass
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Alphabet Faces Antitrust Setbacks as Federal Judges Rule Against Google
US Billionaires Call for Higher Taxes, but Proposed 'Millionaires Tax' May Not Achieve Desired Outcome
This is Vienna, Austria in 2025.
Designed in US, made in China: Why Apple is stuck in tariff tussle
Boeing Jet Returns to US from China Amid Tariff War
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
South East Asia Caught in US-China Trade Dispute
Ukraine and US Sign Outline of Minerals Deal
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
×