AOC strongly urges Biden administration to reconsider student loan interest plan.

Rep. Alexandria Ocasio-Cortez Urges President Biden to Suspend Student Loan Interest Payments

During an interview on CNN’s State of the Union, Rep. Alexandria Ocasio-Cortez (D-NY) made a passionate plea to President Joe Biden. She called on him to suspend student loan interest payments for 12 months, specifically during the “on-ramp” period when payments are set to resume.

“I would like to see interest payments suspended during this time, especially during that 12-month ramp-up period,” Ocasio-Cortez emphasized. “There are millions of people in this country that have student loan debt under $10,000 or $20,000, as outlined in the plan.”

Ocasio-Cortez expressed concern that people should not be burdened with accruing interest during this crucial period. She urged the administration to seriously consider suspending those interest payments.

Her comments were prompted by the recent Supreme Court decision, which deemed Biden’s student debt relief program unconstitutional. This program aimed to eliminate approximately $400 billion in student debt by canceling $10,000 of federal student loans for borrowers earning under $125,000 annually and $20,000 for Pell Grant recipients.

With the nearly three-year moratorium on student loan payments coming to an end, interest will start accruing again on September 1st, and payments will be due starting in October.

Biden’s Response and New Plan

In response to the Supreme Court’s decision, President Biden unveiled a new plan to alleviate the burden of student debt. This plan includes an “on-ramp” repayment program designed to support borrowers who may miss payments. It ensures that they won’t face default or damage to their credit ratings for a period of 12 months.

Biden stated that he would direct the Department of Education not to refer borrowers who miss payments to collection agencies or credit bureaus during this one-year period.

As the debate over student loan relief continues, many are eagerly awaiting further action from the Biden administration.

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