The application to apply for the next round of student loan forgiveness is set to launch next month. However, the U.S. Department of Education has not yet announced what date the launch will happen.
Republicans have criticized the extension. Following the announcement, Senate Minority Leader Mitch McConnell called the help a “slap in the face” and “unfair.”, “Washington Democrats have found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water.
Matsudaira counters the claim that the extension will impact inflation. He said, “I think it’s important to keep in mind, first of all, that student loan payments have been paused during the pause just to give borrowers more breathing room from the pandemic. And, in January, that pause is going to end. So borrowers are going to have to start making payments overall. So, just in terms of the amount of income that people have available, we expect that to go down rather than up overall.
When asked about the threat of possible legal challenges stemming from the extension, Matsudaira said the administration is comfortable with the authority they’re using to pursue the extension and they will address any possible legal challenges as they arise. “It’s just a little bit more breathing room to give people the comfort to be able to use a little bit of their income to invest back in themselves. And, we expect this to really make a difference for millions and millions of hardworking Americans who are going to be able to breathe a little bit more easy in terms of the process,” he said.
Matsudaira said once the application launches in October and eligibility is confirmed, borrowers could see their balances adjusted within the course of 4-6 weeks.
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