Biden considering extending payment pause on student loans

Posted at 11:35 PM, Dec 21, 2021
and last updated 2021-12-21 23:35:59-05

WEST PALM BEACH, Fla. — Currently, there are 42 million Americans with student debt. About a third of those folks are in delinquency or default.

Since March 2020, most federal student loan borrowers have been given the option to press the pause button on their monthly bills.

Shyleen Diaz is one of those borrowers.

"Honestly, I can say maybe $15,000, maybe more than that. It was for nursing school, so it might be a little more," she said.

However, that pause is currently set to end at the end of next month. President Joe Biden's administration is considering extending the payment pause and interest waiver for millions.

"Oh yeah, I'm happy about that because my credit score will go up again," Diaz said. "I can start making my other payments towards other things and buy my house. That will work out really well for me."

The Student Debt Crisis Center said student loan debt in the U.S. has surpassed a trillion dollars.

It's a reality that's troubling to Cody Hounanian, the center's executive director.

"We call it a crisis because we, from day one, have recognized student loan debt as being a huge burden, not just for individuals and their families, but also for the entire economy," he said.

A decision on whether to extend the pause is expected later this week.