Biden’s Student Loan Dilemma

<p>Across the United States, 45 million borrowers now owe $1.6 trillion in debt for federal loans taken out for college — more than consumers owe on any other debt except mortgages.</p><p>For the past two years, beginning as the pandemic spread, the U.S. government has allowed tens of millions of Americans to stop paying back their students loans.</p><p>This experiment in debt deferral has had unintended consequences, and poses a dilemma for President Biden.</p><p>Guest: <a href="https://www.nytimes.com/by/stacy-cowley?smid=pc-thedaily">Stacy Cowley</a>, a finance reporter for The New York Times.</p><p>Want more from The Daily? For one big idea on the news each week from our team, <a href="https://www.nytimes.com/newsletters/the-daily?module=inline">subscribe to our newsletter</a>. </p><p>Background reading: </p><ul><li>The Biden administration has paused student loans once again. The four-month delay means the pause will become an issue again <a href="https://www.nytimes.com/2022/04/05/business/student-loan-pause-pandemic.html?smid=pc-thedaily">before the midterm elections</a>.</li><li>While politically popular with Mr. Biden’s party, the extension of the loan moratorium has drawn criticism for adding a <a href="https://www.nytimes.com/2022/04/06/business/economy/student-loan-pause-inflation.html?smid=pc-thedaily">small measure of oomph</a> to the inflation the government is trying to tame.</li></ul><p>For more information on today’s episode, visit <a href="http://nytimes.com/thedaily?smid=pc-thedaily">nytimes.com/thedaily</a>. Transcripts of each episode will be made available by the next workday. </p>