Student-loan borrowers still need answers from Biden on these 3 things before payments resume next year, according to a Democratic senator

• Sen. Bob Menendez lauded Biden's recent $20,000 student-loan forgiveness announcement.
• But he said borrowers still need more answers before payments resume next year.

President Joe Biden may have finally enacted blanket student-loan forgiveness — but one Democratic senator says the president can't stop there.

Last week, New Jersey Sen. Bob. Menendez wrote an opinion piece lauding Biden's recent student-loan forgiveness announcement: up to $20,000 in relief for Pell Grant recipients making under $125,000 a year, and up to $10,000 in relief for other federal borrowers. Biden promised loan forgiveness on the campaign trail, and Menendez said it marks "an important step towards restoring faith in the American Dream."

"Because for too long, those burdened with student loan debt haven't even had the chance to start saving," he wrote. "Instead, dreams of building families or starting a business have been delayed — including by parents who have financed their children's education. With last month's announcement, Biden is lifting them up and giving them a chance to succeed."

But, as Menendez noted, the announcement of student-loan forgiveness still leaves a lot of unanswered questions for millions of borrowers before the student-loan payment pause ends at the end of this year. These are three things he says Biden needs to clarify before federal borrowers have to foot another monthly bill:

1. The new income-driven repayment plan. When Biden announced the blanket relief, he also proposed a new version of an income-driven plan that would require borrowers to pay no more than 5% their discretionary income monthly on their undergraduate student loans. Menendez wants additional details on how that plan will be carried out.
2. The Public Service Loan Forgiveness (PSLF) waiver. Last year, the Education Department announced plans to reform PSLF, including a waiver through October 31 that would allow past payments to count toward forgiveness progress, even those previously deemed ineligible. Menendez said public servants need certainty the program will work out for them and called for an extension of the waiver through July 1, 2023.
3. Taxes on debt relief. Menendez said any loan forgiveness should not be treated as taxable income through 2025, in pursuance with a provision he led with Sen. Elizabeth Warren.

Insider previously reported on the high stakes for borrowers before payments resume next year. Not only will the majority of them have to apply for debt cancellation through an online form that will become live in early October — those who are public servants have just over one month left to make use of the expanded PSLF benefits. And that's all before payments are scheduled to resume in January 2023, meaning borrowers also need to use this remaining time to financially plan for an additional bill.

Insider previously spoke to a borrower who said the payment pause has "meant so much to our family," allowing them to pay down other debts and make needed repairs — and like Menendez, he said he hopes the relief does not end here.

"I hope executive action on the student loan crisis doesn't end here," the borrower said. "It is a decision not to cancel more to help more people. I don't know where this tolerance for lifelong debt comes from, but we should not settle."