Biden mulling student loan freeze extension

White House press secretary Jen PsakiJen PsakiOvernight Health Care — Senators unveil pandemic prep overhaul Qatar emir to meet with Biden at White House next week White House underscores action amid violent crime streak MORE on Tuesday suggested President BidenJoe BidenDeputy AG: DOJ investigating fake Trump electors On The Money — Vaccine-or-test mandate for businesses nixed Warner tests positive for breakthrough COVID-19 case MORE could extend a pandemic freeze on student loan payments and interest accrual. 

During a Tuesday briefing at the White House, Psaki told reporters Biden has not yet decided whether he will allow millions of Americans to forgo student loan payments at no additional cost beyond Jan. 31.

Biden in August extended an order initially issued by former President TrumpDonald TrumpDeputy AG: DOJ investigating fake Trump electors Former Boston Red Sox star David Ortiz elected to Baseball Hall of Fame Overnight Health Care — Senators unveil pandemic prep overhaul MORE in March 2020 to pause due payments and interest on federally held student loans through the end of next month. The administration said it would likely be the last extension of the order, and Psaki all but ruled out another extension in a press conference two weeks ago.


"We're still assessing the impact of the omicron variant, but a smooth transition back into repayment is a high priority for the administration,” Psaki said on Dec. 10.

Even so, Biden has faced intense pressure from progressives not only to extend that pause, but also cancel a significant chunk of federally held student debt. Democratic lawmakers have warned Biden not to begin collecting debt payments as the economy braces for another potential hit from the pandemic amid an otherwise strong recovery.

“Restarting student loan debt payments would take more than $85 billion dollars out of our economy next year. We're still in a pandemic and people are still struggling. @POTUS  shouldn’t restart payments and should use his authority to #CancelStudentDebt,” wrote Sen. Elizabeth WarrenElizabeth WarrenFiscal conservatives should support postal reform  Five Democrats the left plans to target Arizona Democratic Party executive board censures Sinema MORE (D-Mass.), a leading advocate for student loan forgiveness, in a Tuesday tweet.

Roughly 44 million Americans owe the federal government a combined $1.6 trillion in student loans. Progressive lawmakers and activists have urged Biden to forgive up to $50,000 per borrower through executive action, insisting the president has the legal authority to do so without congressional approval.

Biden has asked administration officials to review his legal authority to forgive student debt through executive order and has said he would sign a bill passed to forgive up to $10,000 per borrower. Even so, Congress is highly unlikely to pass a debt forgiveness bill with almost all Republicans and notable contingent of Democrats — including Speaker Nancy PelosiNancy PelosiHouse leaders unveil bill to boost chip industry, science competitiveness with China Pelosi says she will run for reelection in 2022 Hoyer says 'significant' version of Build Back Better will pass this year MORE (D-Calif.) — opposed to a debt wipeout.