Biden To Extend Student Loan Pause And Eviction Moratorium On Day One

Topline

 Hours after he is sworn in as president, Joe Biden will sign a series of executive orders aimed at providing immediate financial relief to Americans struggling as a result of the coronavirus pandemic. 

Key Facts

Biden will extend a now-expired moratorium on certain evictions through the Centers for Disease Prevention and Control until the end of March.

The original eviction moratorium set up by the CDC applied to individuals earning less than $99,000 in 2020 (or couples earning less than $198,000).  

Biden will also ask federal agencies including the Department of Housing and Urban Development to extend foreclosure moratoriums on mortgages backed by the federal government through the end of March. 

Biden will also extend forbearance on federal student loans (not private loans) through the end of September, meaning borrowers won’t accrue interest or be required to make payments.

Payments on federal student loans have been suspended since March and were originally set to resume at the end of January. 

Big Number

14 million. That’s how many people were behind on their rent in December, according to Census Bureau data.

Tangent

Top Democrats including incoming Senate Majority Leader Chuck Schumer (D-N.Y.) are pushing Biden to use his new executive authority to cancel up to $50,000 in debt for federal student loan borrowers. Biden has not indicated he will use an executive order to do this, but his team has said he will push Congress to pass legislation cancelling $10,000 in debt for federal borrowers—a major promise from his campaign.

What To Watch For

In an addition to the executive orders he will sign on Wednesday and in the coming days, Biden will push Congress to pass a $1.9 trillion stimulus package containing much broader relief measures including another round of direct payments and a further enhancement of federal unemployment insurance. 

Further Reading

Biden Is Inheriting One Of The Worst Economies In Recent History—These 5 Numbers Show How Much He Needs To Fix (Forbes)

Janet Yellen Wants Lawmakers To ‘Act Big’ On Stimulus (Forbes)

Poll: 82% Of Americans Want More Small Business Aid, 72% Want Stimulus Checks From Biden Administration (Forbes)

Biden Will Push Congress To Pass $1.9 Trillion Stimulus: ‘We Have A Moral Obligation’ (Forbes)

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