Speaker of the House Kevin McCarthy, R-Calif., speaks at the U.S. Capitol on May 28, 2023 after an “agreement principle” was reached between House Republicans and President Joe Biden’s team to avoid a default on the U.S. debt.
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A measure in the debt ceiling deal terminating the student loan payment pause is facing heavy opposition from advocates, progressives and borrowers.
“The pause on student loan payments remains one of the most durably popular pieces of economic policy because the American people recognize what Washington has long struggled to understand: The student loan system is broken,” said Mike Pierce, executive director of the Student Borrower Protection Center.
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The center published a poll on Monday finding that 61% of voters want the stay on student loan bills, which has been in effect for more than three years now and spanned two presidencies, to be extended if President Joe Biden’s sweeping forgiveness plan is struck down by the U.S. Supreme Court. A decision by the justices is expected in June or July.
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Rep. Ayanna Pressley, D-Mass., filed an amendment on Monday that would strike the debt ceiling deal provision ending the pause on student loan payments. Pressley’s proposed amendment was not included in the final bill.
“Republicans continue to play games with our economy, with disregard for our most vulnerable families,” Pressley said.
According to the legislative text of the proposed agreement to raise the debt ceiling, the pause on federal student loan payments will “cease to be effective” and borrowers will be required to resume paying their student loan bills 60 days after June 30. Their first due date will likely be in September, experts said.
White House spokesman Abdullah Hasan defended the president’s negotiations on behalf of borrowers, pointing out that the administration had planned to end the pause this summer anyway.
“This agreement makes no changes to that plan,” Hasan said.
Congressional control idea worries advocates
However, as part of the deal, the U.S. Department of Education would also be restricted in its ability to extend this particular relief again, with another prolongment likely only possible from Congress. The department has been able to extend the pause on its own several times…
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