Moratorium on student loan repayments expires May 1

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MILWAUKEE (CBS 58) — President Joe Biden’s $5.8 trillion budget proposal includes additional funding for education, but he specifically did not include any aid for student loan relief.

The moratorium on student loan repayment and interest is due to expire on May 1.

“The payments haven’t been made for two years now, and I think a lot of people have gotten used to living their lives without making those payments,” said Erik Kroll, owner of Student Loans Over 50.

Kroll specializes in helping people over 50 repay their student loan or that of their child.

“There’s about a million (people) across the country who are over 50 and have six figures, over $100,000 (in loans),” Kroll said.

There’s a chance the White House could extend the moratorium, but with the deadline fast approaching, Kroll said people are just looking for clarity.

“The government has sent a lot of mixed messages. It’s going to start on date X and then it’ll be rolled back,” Kroll said.

Experts said the heist was political. Biden and other Democratic leaders have floated the idea of ​​forgiving student loans.

“What’s a half step to making college free? It’s canceling loans,” said University of Wisconsin-Milwaukee professor emeritus Mordecai Lee.

Some Republicans are against their idea.

“It’s so free that when students signed up for student loans, they were adults, they were 18 and over,” Lee said.

If Biden chooses to provide student loan relief, Lee said he can move forward in two ways.

“When all it takes is a signature on a piece of paper, a stroke of a pen, say the president signs an executive order, that could happen tomorrow,” Lee said. “If it’s going through Congress, it couldn’t happen until May 1.”

Kroll said now is a good time for people with student loans to check their payment amounts because they could have changed.

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