President Joe Biden's administration confirms student loan relief will not be extended, as loan payments are expected to restart as soon as February 1, 2022.
Biden Administration Press Secretary Jen Psaki confirmed the President's decision to the press over the weekend, bringing uncertainty for college graduates throughout the country, including Chula Vista locals.
"41 million borrowers have benefited from the extended student loan payment pause, but it expires February 1, so right now we're just making a range of preparations," said Psaki.
This will ultimately result in criticism from progressives in Washington who have applied pressure on the President to extend student loan relief on millions of college graduates in the United States.
Democrat Senators such as Elizabeth Warren and Senate Majority Leader Chuck Schumer say up to 89% of federal student loan borrowers find themselves fiscally unable to restart any loan payment plans.
Victor Lopez-Celaya is a Chula Vista native who owes over $17,000 in student loan debt as a graduate from UC Riverside, where he received his degree in Psychology in 2020.
Victor was discouraged by President Biden's decision to put an end to the student loan relief, saying that the president is falling short on his promise of making student loans a priority for his administration.
"I definitely feel disappointed and baited by Biden's decision to go back to his word. During his campaign, he mentioned several times not only extending the moratorium but canceling student loan debt as well," Lopez said.
The UCR graduate says that he's afraid that the president was only using those talking points to gain as many votes as possible entering the 2020 Presidential Election.
"I feel he used this promise to attract voters who are under pressure and burdened to pay off the debt, yet never really planned on delivering," Victor added.
Victor, along with thousands of other first-generation Latinx college graduates that come from the lower and working-class of this country, fear that the restart of student loan payments will start to take a toll on their month-to-month expenses and experiences.
According to a study from June 2020, over 72% of Latinx college students apply for loans to pay for their academic tuition. In addition, the same study from the Student Borrower Protection Center shows that even a decade after entering college, the median Latinx student loan borrower still owes over 80% of their earliest loan balance.
Financial analysts suggest that college graduates look into the various repayment options to become fiscally prepared as February 1st approaches.
