The decision over extending the student loan payment pause is also complicated by the larger debate roiling the Biden administration over how to respond to progressive demands for sweeping student debt cancellation.
Some White House advisers support further extending the relief to give the Education Department, which is charged with managing the $1.6 trillion federal student loan portfolio, more time to come up with a plan to ease borrowers back into repayment, according to people familiar with the discussions. But other advisers worry that continuing an emergency pandemic relief program into 2022 could undercut the administration’s messaging about the strength of the economic recovery.
The administration official said that the Education Department “is working to ensure that struggling borrowers are supported when payments are lifted.” An Education Department spokesperson declined to comment. Education Secretary Miguel Cardona has not publicly taken a position on whether to extend the student loan payment pause, saying only that it’s a possibility. “We recognize the impact that the pandemic had on our borrowers,” Cardona said during a Senate hearing last month. “Extending the pause is something that we have had conversations about.”
Still, student advocacy groups have urged the Biden administration not to resume collecting student loan payments until the Education Department has enacted a series of reforms to the system.
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