Boots & Sabers

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1231, 22 Dec 21

Biden Extends Student Loan Freeloading

How does he reconcile his messaging that the economy is rebounding and that his administration has created more jobs than any other president with the message that there isn’t enough work for these people to pay back their loans? Or that there is a surplus of spending power/demand in the economy that’s driving inflation, but the same people can’t afford to pay their debts? We are accelerating a culture of freeloading.

Washington (CNN)President Joe Biden announced Wednesday he is extending the pause on student loan payments until May 1.

The payments, which were set to restart on February 1, have been paused since the beginning of the pandemic. Biden pointed to the ongoing Covid-19 crisis in the country as the reason for the extension.
“Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery,” Biden said in a statement. “Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.”
The reversal comes less than two weeks after White House press secretary Jen Psaki had indicated that the administration was still planning to restart federal student loan payments in February, resisting pressure from some fellow Democrats who have been calling for an extension of coronavirus pandemic relief benefits.

1231, 22 December 2021

1 Comment

  1. dad29

    The surplus cash driving demand is the cash NOT used to repay the loans.

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