Reverses decision just a few weeks ago to not extend the pause
President Joe Biden has reversed his previous decision to only extend the pause on student loan payments through February 1.
Borrowers now will be able to continue avoiding paying back student loans until at least May 1, 2022. Federal student loan repayments have been paused since March 2020.
Biden said on December 22:
Now, while our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — we know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments.
This is an issue Vice President Harris has been closely focused on, and one we both care deeply about.
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 administration, through 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.”
He recommended that borrowers take advantage of the pause and prepare for the eventual restart on loan repayments.
“I’m asking all student loan borrowers to do their part as well,” Biden said. He told borrowers to “take full advantage of the Department of Education’s resources to help you prepare for payments to resume; look at options to lower your payments through income-based repayment plans; explore public service loan forgiveness; and make sure you are vaccinated and boosted when eligible.”
IMAGE: David Lienemann/White House