Biden Extends A Pause On Federal Student Loan Repayments

By THOUSIF INC

According to an administration official familiar with the matter, the Biden administration is planning to extend a pause on federal student loan repayments through August 31.

The repayment freeze, which has been in place since the pandemic, was scheduled to expire on May 1.

The official said the administration is expected to announce the extension on Wednesday.

Borrower balances have effectively been frozen for more than two years, with no payments required on most federal student loans since March 2020.

Borrower balances have effectively been frozen for more than 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.

Both President Joe Biden and former President Donald Trump have taken actions to extend the pause.

Biden had previously moved the payment restart date on three different occasions.

When the Biden administration extended the pause from September 2021 to the end of January 2022, it warned that it would be the final extension.

However, the President pushed back the date again as Covid-19 cases rose during the winter.

Due to inflation, Biden has recently faced pressure from other Democrats and consumer advocate groups to move the date again.

Moreover, ongoing supply chain issues make everyday items more expensive for households.

Dozens of Democratic lawmakers sent a letter to Biden last week urging him to extend the pause until the end of the year.

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