Mandatory Credit: Photo by Evan Vucci/AP/Shutterstock (12472020d)President Joe Biden delivers remarks on COVID-19 during an event in the South Court Auditorium on the White House campus, in WashingtonBiden, Washington, United States - 27 Sep 2021.

President Biden Extends Student Loan Repayment Pause Until May 1, Citing COVID Concerns

Mandatory Credit: Photo by Evan Vucci/AP/Shutterstock (12472020d)President Joe Biden delivers remarks on COVID-19 during an event in the South Court Auditorium on the White House campus, in WashingtonBiden, Washington, United States - 27 Sep 2021.

Evan Vucci/AP/Shutterstock / Evan Vucci/AP/Shutterstock

President Biden introduced on Dec. 22 that the student loan reimbursement pause has now been prolonged till May 1, 2022, citing the continuing COVID-19 disaster as the rationale for the extension. Student loan funds and collections on defaulted student loans have been paused — with rates of interest briefly set to zero — because the starting of the pandemic.

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“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 stated in an announcement, per CNN. “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.”

This announcement comes lower than two weeks after White House press secretary Jen Psaki stated, throughout a press convention, that federal student loan funds had been set to renew in February. However, an Education Department spokesperson indicated in an announcement to Politico on Dec. 21 that the student loan repayments might once more be postponed.

Biden additionally suggested student loan debtors to organize for the restart of funds by contemplating enrolling in income-driven reimbursement packages.

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“As we prepare for the return to repayment in May, we will continue to provide tools and supports to borrowers so they can enter into the repayment plan that is responsive to their financial situation, such as an income-driven repayment plan,” Education Secretary Miguel Cardona stated in a Dec. 22 assertion, CNN reported.

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USA Today added that the announcement was praised by lawmakers and borrower advocacy teams who had been urging Biden to increase the pause, and to cancel student debt via govt motion.

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About the Author

Josephine Nesbit is a contract author specializing in actual property and private finance. She grew up in New England however is now primarily based out of Ohio the place she attended The Ohio State University and lives together with her two toddlers and fiancé. Her work has appeared in print and on-line publications equivalent to Fox Business and Scotsman Guide.