Federal Student Loan Borrowers Can Rejoice Again

Veronica Charnell Media

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Millions of Student Loan Borrowers was on the edge preparing their monthly budgets to start including their student loan payments. Recently, the Biden Administration has extended no payments on Federal Student Loan Payments to August 31.

The administration also said Wednesday that borrowers who have defaulted on student loans that are currently paused would have that default status removed from their credit history to give them a “fresh start” when they reenter repayment.

Removing negative items from your credit report will help increase borrowers credit scores, but Americans and members of congress feels this is not enough. There has been a group protesters demanding all Federal Student Loans be canceled. While many Democrats support some form of student loan cancellation, there has not been a bipartisan support in Congress to make any significant moves on the issue since Biden took office.

In the United States, Federal student loan debt is worth over a trillion dollars. Recent reports show 44 Million Americans has Federal Student Loan Debt. The Education Data Initiative , and the burden of federal debt lies disproportionately on Black Americans.

Some members of congress feel’s President Biden should used executive actions to cancel student loan debt. Biden has been a lot pressure to reduce some of the country's $1.7 trillion in outstanding education debt. Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass., are pushing him to cancel $50,000 per borrower. It would be nice if President Biden agrees to cancel all Federal Student Loans that occur before March 2020. Which will significantly help lift the financial burden on Student Loan Borrowers.

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