Suspend Student Debt Interest When Payments Resume Next Year, AOC Says

Democratic Rep. Ocasio-Cortez urged U.S. President Biden to suspend the student debt interest once the payments resume next year. The proposition was after the Supreme Court ruled that Biden’s Student Loan Forgiveness cannot be implemented.

At the end of the month of June, the Supreme Court ruled that U.S. President Joe Biden’s Student Loan Forgiveness program was an overreach of authority and must not be implemented. Nonetheless, Biden announced other measures to provide student loan relief including the plan to use the Higher Education Act of 1965.

According to Sheffey, in addition, a year of “on-ramp” will be granted to student borrowers to ensure that those who fail to pay will not be reported to any credit agencies or bureaus. However, during this period, student debt interest will, unfortunately, accumulate from the student borrowers’ balances.

READ ALSO: $400 Billion Student Debt Relief Plan Defended By White House Ahead Of Supreme Court Ruling

No Student Debt Interest on Balances

According to Sforza, on July 2, Democratic Representative Alexandria Ocasio-Cortez urged Biden to reconsider his plans and suspend the student debt interest, especially during the 12-month-long on-ramp period.

Along with Ocasio-Cortez, California Representative Ro Khanna also urged the White House to ensure that the student debt interest does not accrue beginning in September. Biden has not yet commented on the suggestions, but the Department of Education advises student borrowers to make payments because student debt interest is scheduled to accrue a month before settlements start again in October.

READ ALSO: Student Debt Relief Plan Worst-Case Scenario If Supreme Court Blocks Program