Biden extended the student loan moratorium as Obama made his White House return.

Shannon Longworth Reporter

Obama makes White House return, Biden extends student loan moratorium

Apr 05, 2022

Shannon Longworth Reporter

By Shannon Longworth (Reporter), Ben Burke (Producer/Editor), Pierce Sharpe (Digital Producer)

On the same day former President Barack Obama made his first trip to the White House since leaving office, news came out that the Biden administration is planning to extend its student loan repayment moratorium until Aug. 31. The extension, first reported Tuesday by Bloomberg, has not been officially announced by the administration.

Student loan payments were scheduled to resume May 1 after being halted since early in the pandemic. Before that, it looked like the moratorium was going to end at the end of January.

The action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government, according to the latest data from the Education Department. The move comes amid rising concern that large numbers of Americans would quickly fall behind if payments restarted in May.

It remains in question whether Biden will pursue widespread debt forgiveness to reduce the nation’s student debt. Some Democrats in Congress have pressed Biden to use executive action to cancel $50,000 for all student loan borrowers, saying it would jumpstart the economy and help Black Americans who on average face higher levels of student debt.

It was not student loans but Obama’s signature healthcare law that had him returning to the White House for the first time since leaving office in 2017.

“If you can get millions of people health coverage and better protection, it is, to quote a famous American, a pretty big deal,” Obama said to hoots of laughter from the crowd, referencing an off-color Biden remark picked up by a hot mic when the law was signed.

The former president was on hand as Biden unveiled a measure to fix an element of the healthcare law known as the “family glitch” that left family members of those with access to employer-provided health plans ineligible for certain subsidies.

While Obama remains a popular figure, Biden faces moribund public approval ratings thanks in part to high inflation and the lingering COVID-19 pandemic. As a result, Democrats face the risk of losing control of at least one, if not both, chambers of Congress in November, which would bring Biden’s legislative agenda to a halt.

Shannon Longworth: For the 43 million of you who were gearing up to resume paying off your student loans next month, you have one less thing to worry about for the time being.
That’s President Biden’s hope as he postpones student loan payments yet again.
Now, the extension is through August 31st.
Sen. Chuck Schumer | (D) New York, Senate Majority Leader: “Students are suffering under a huge amount of debt. And to extend the moratorium is a good thing. But of course, I believe the president should go further and forgive $50,000 in student loans permanently. It’s a huge burden on so many people. College should be a ladder up. It is all too often with student debt is an anchor down.”
Shannon Longworth: In other DC news… we saw a familiar face at the White House today.
Former President Barack Obama returned for the first time in 5 years…with a sense of humor.
Former President Barack Obama: “Thank you. Vice President Biden, vice president…(laughter) That was a joke.”
Shannon Longworth: Obama was present to praise his signature Affordable Care Act — as Biden announced a change to the law…what he considers a fix for the “family glitch.” It’d allow thousands more people to get healthcare coverage through Obamacare.
Former President Joe Biden: “It directs federal agencies to continue doing everything in their power, everything in their power to expand quality and affordable health care coverage, making it easier for people to enroll in and keep their coverage, helping people better understand their coverage options and to pick … to be able to pick the best option for that family.”