On the Record: U.S. Sen. Dick Durbin recommends Pres. Biden suspend interest rates on student loans longer

On The Record

PEORIA, Ill. (WMBD) — Student loan payment deferment is coming to an end.

White House Press Secretary, Jen Psaki, confirmed this week that President Biden does not plan to extend the COVID-19 pause on student loan repayments.

This means nearly 43 million Americans will get hit with interest rates again, something that hasn’t happened since the CARES Act passed in March 2020. It was signed into law by President Trump on March 27, 2020.

The pause expires on Jan. 31, 2022. Payments will start back up in February.

U.S. Senator Dick Durbin (D-IL) was Matt Sheehan’s guest for On the Record this week. Sen. Durbin said he urges the President to suspend payments further.

“I hope the President takes my recommendation, I joined with a fellow Senator to ask the administration, to suspend interest payments on these loans for a period of time,” Sen. Durbin said. “So students have less of a burden to carry as they get back on their feet.”

When asked if the idea of “cancelling” student loans was still on the table, Sen. Durbin said it’s “unlikely.” He offered a different idea.

“The ultimate solution, and I really support this and have legislation, is to allow students to discharge their student loans after 10 years in bankruptcy,” Sen. Durbin said. “You can discharge everything you borrow money for. From a house, to a boat, to a car, and a second home, but you can’t discharge your student loans. That’s unfair. I think after 10 years you should be allowed to.”

This was part of Sheehan’s On the Record segment, airing Fridays at 5:40 a.m. on WMBD This Morning.

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