“We are still recovering from the pandemic and the unprecedented economic disruption it caused,” Biden said, in a statement.
Restarting the payments could “threaten Americans’ financial stability,” the president said, citing recent research from the Federal Reserve that forecast a rise in delinquencies and defaults when the bills begin again.
Biden is also under tremendous pressure to forgive student debt. On the campaign trail, he promised to cancel $10,000 for all.
Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass., are pushing him to cancel closer to $50,000 per borrower.