President Biden instructs Department of Education to extend student loan relief

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Thursday, January 21, 2021
Biden's student loan plan is 'blessing,' Houstonian says
ABC13's TJ Parker spoke with an economics expert to help break down Biden's student loan forgiveness proposal.

HOUSTON, Texas -- At the request of President Joe Biden, acting Secretary of Education will extend the pause on Federal Student Loan payments and collections and keep the interest rate at 0% through Sept. 30.

The extension was announced Wednesday evening, days before the moratorium is set to expire at the end of this month .

SEE MORE: President-elect Biden's loan forgiveness proposal comes as welcome news for one Houston college student

"Too many Americans are struggling to pay for basic necessities and to provide for their families. They should not be forced to choose between paying their student loans and putting food on the table," a statement from the U.S. Department of Education read.

Biden's plan to help ease the student loan burden on many Americans includes a proposal to forgive at least $10,000 of it.

Although the proposal was part of Biden's presidential campaign, all the details haven't been released.

About 41 million Americans will continue to benefit from the federal government's pause of student loan payments.

The video above is from a previous report on Jan.15