Colorado U.S. Senator Michael Bennet released the following statement after President Joe Biden announced his decision to extend the pause on student loan repayment through August 2022; this comes weeks after Bennet called on the President to extend the pause and work with leaders of both parties to address the student loan debt crisis
“I’m pleased that President Biden has extended the pause on student loan repayment until August. I called on the president to take this step last month as Coloradans face higher costs. I look forward to working with the president and leaders on both sides of the aisle to develop long-term solutions to address the root causes of America’s problem with student loan debt and help student loan borrowers.”
Last month, Bennet urged President Biden to extend the pause on student loan repayment, interest, and collections as the U.S. economy continues to recover from the Coronavirus Disease 2019 (COVID-19) pandemic. He also asked the president to work with leaders of both parties to develop long-term solutions to the U.S. student loan debt crisis.
“The extension will serve two purposes. First, it will ensure a smooth return to repayment and give student loan borrowers additional time to recover from the economic downturn that the pandemic caused. It will also help borrowers who are struggling with inflation and higher costs associated with postsecondary education, including the cost of childcare for student parents,” wrote Bennet. “Second, it will offer time for the Administration to work with leaders in both parties to seek long-term solutions to the root causes of the student debt problem in the United States. As you know, student loan borrowers, especially borrowers of color and first-generation borrowers, are experiencing an unmanageable burden of student loan debt, and historically rapid increases in college tuition.”
According to the Department of Education, about 773,000 Coloradans owe approximately $28.5 billion in federal student loans. Nationwide, the pause on student loan payments has helped 41 million borrowers save $5 billion per month. But as college tuition continues to rise at historic rates, Bennet is urging the president to do more to ease the financial burden many borrowers experience, especially borrowers of color and first-generation borrowers.
“To this end, the Administration should consider additional proposals to deliver relief to borrowers seeking college degrees and skills training,” Bennett emphasized. “This could include permanently making most federal student loans interest-free. It could also include making incentives to save for postsecondary education universally available and more flexible and considering federal seed money or a match for low-income students so they can build accounts that pay college costs, instead of relying heavily on student loans. We should also explore increasing incentives to employers to help pay tuition for workers. Finally, we should continue to work together to increase the maximum Pell Grant award.”