The Biden administration extended the national pause on student loan payments until Aug. 31 due to the ongoing “recovery” from the COVID-19 pandemic.
The already-extended order was set to expire May 1.
In a widely anticipated move, President Biden on Wednesday extended the suspension of federal student loan payments through Aug. 31, marking the sixth extension in the two years since the moratorium began in the wake of the pandemic.https://t.co/k1R1fzsgBP
— The Washington Post (@washingtonpost) April 6, 2022
“If loan payments were to resume on schedule in May, analysis of recent data from the Federal Reserve suggests that millions of student loan borrowers would face significant economic hardship, and delinquencies and defaults could threaten Americans’ financial stability,” Biden said.
"President Biden’s perpetual student loan payment moratorium is an insult to every American who responsibly paid debts," said Sen. Tom Cotton (R-Ark.). https://t.co/pXYgavcaha
— The Hill (@thehill) April 5, 2022
“That additional time will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs,” Biden added.
The President routinely called for Congressional action on student debt during his 2020 campaign for the White House.
“Immediate $10,000 forgiveness of student loans, helping people up there in real trouble,” Biden said in 2020. “They’re having to make choices between paying their student loan and paying the rent. Those kinds of decisions.”
Read the full report at Fox News.