On Wednesday, President Joe Biden announced that the pause on federal student loan repayments for will be extended through May 1, according to the White House announcement.

  • This moratorium, which set interest rates to 0% during the pause, was set to expire on Feb. 1, 2022.
  • “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,” Biden wrote in a statement.
  • The statement urged borrowers to prepare for repayments to resume, noting that 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 pause would also give “41 million Americans badly-needed breathing room during the economic upheaval caused by the global COVID-19 pandemic,” the statement said.
  • The pause will save borrowers $5 billion a month, according to NPR.  

According to Fox News, the Biden administration signaled that it planned to resume federal student loan payments at the end of January, despite the pleas of progressive Democrats.

  • Per the report, the White House press secretary even said that the administration has no plans to do so and the focus is on a ”smooth transition back into repayment.”