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President Biden Pauses Student Loan Repayment Until May 1st

President Biden Pauses Student Loan Repayment Until May 1st

President Joe Biden announced Wednesday he is extending the pause on student loan payments until May 1st.

The payments, which were set to restart on February 1st, have been paused since the beginning of the pandemic. President Biden pointed to the ongoing Covid-19 crisis in the country as the reason for the extension.

Photo by Mario Tama/Getty Images

Borrower balances have effectively been frozen for nearly two years, with no payments required on most federal student loans since March 2020. During this time, interest has stopped adding up and collections on defaulted debt have been on hold. Donald Trump also took action to extend the pause, but most recently, President Biden moved the payment restart date from September 30, 2021, to January 31, 2022. The administration made clear at the time that this would be the final extension.

 

The extension comes less than two weeks after White House Press Secretary Jen Psaki had indicated that the Biden administration was still planning to restart federal student loan payments in February, resisting pressure from some fellow Democrats who have been calling for an extension of coronavirus pandemic relief benefits.

“Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery,” the President said in a statement. “Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.”

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President Biden said during his campaign that he would support canceling $10,000 per borrower, but has not taken action to do so beyond directing federal agencies to conduct reviews on whether he has the authority.

Borrowers will receive a billing statement or other notice at least 21 days before their payment is due, according to the Department of Education which has more information online about the payment restart.

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