President Joe Biden announced Wednesday that he will extend the pause on student loan payments until May 1.
Payments, which were scheduled to restart on February 1, have been on hold since the start of the pandemic. President Biden pointed to the current Covid-19 crisis in the country as the reason for the extension.
Photo by Mario Tama /.
Borrower balances have been effectively frozen for nearly two years, with no payments required on most federal student loans since March 2020. During this time, interest stopped accruing and debt collections stopped. in arrears were kept on hold. Donald Trump also took steps to extend the hiatus, but more recently, President Biden moved the payment restart date from September 30, 2021 to January 31, 2022. The administration made it clear at the time that this would be the extension. final.
I applaud President Biden for once again stopping federal student loan payments for 45 million Americans. Now we are going to cancel it. All of it.
– Bernie Sanders (@SenSanders) December 22, 2021
The extension comes less than two weeks after White House press secretary Jen Psaki indicated that the Biden administration was still planning to restart federal student loan payments in February, resisting pressure from some fellow Democrats who They have been calling for an extension of aid benefits for the coronavirus pandemic. .
Today, I announced that my Administration will extend the pause on federal student loan payments for an additional 90 days. pic.twitter.com/mxveCTe7bH
– President Biden (@POTUS) December 22, 2021
“Given these considerations, today my Administration is extending the pause in federal student loan payments for an additional 90 days, until May 1, 2022, as we manage the ongoing pandemic and further strengthen our economic recovery,” said the president. it’s a statement. “In the meantime, the Department of Education will continue to work with borrowers to ensure they have the support they need to make a smooth transition to repayment and promote economic stability for their own homes and for our nation.”
Today, we announced that we are extending the pause in federal student loan payments for another three months until May 1, 2022. Learn more at https://t.co/TPZcjiJoxY. pic.twitter.com/3QVkzdITvT
– Vice President Kamala Harris (@VP) December 23, 2021
See also
President Biden said during his campaign that he would support canceling $ 10,000 per borrower, but has taken no steps to do so beyond ordering federal agencies to conduct reviews on whether he has the authority.
This is good policy. And looking to the future, the government should not make a profit at the expense of students. My Student Loan No Interest Act would waive all interest on existing federal loans and set interest at 0% from now on, so borrowers have a fighting chance to pay off loans and prosper. https://t.co/8t37HSeyvq
– Representative Eric Swalwell (@RepSwalwell) December 22, 2021
Borrowers will receive a 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 repayment reset.
The federal student loan freeze was first enacted in 2020 and was recently extended through May 1, 2022. To help you prepare, we’ve answered how long student loans are interest-free and what steps you can take to prepare for resume payments. https://t.co/BbD5DjXiEK
– Student Loan Hero (@StudentLoanHero) December 23, 2021
–
