President Joe Biden reversed course on Wednesday and extended the freeze on federal student loan payments until May 1, citing the continuing impact of the pandemic.
In a statement, the president also said though job numbers are up, he recognized that millions of borrowers would still struggle to make their payments.
“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,” Biden said. “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.”
Biden also called on borrowers to prepare for the restart of payments by considering enrolling in one of the government’s income-driven repayment programs.
The announcement of the extension was praised on Wednesday by lawmakers and borrower advocacy groups who have both been pressing Biden to extend the pause and cancel student debt via executive action.
The moratorium had started under former President Donald Trump as the economy faltered during the early days of COVID-19, and Biden continued it. All told, more than 40 million Americans have had nearly two years without required payments or interest on their collective $1.7 trillion in student loans. And the Education…
