The Biden administration has decided to extend the COVID-19 relief for student debt through the rest of 2021, and one month of 2022, according to multiple reports.
- Education Secretary Miguel Cardona said in a statement: “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment.”
When do you have to start paying student debt again?
The Department of Education said Friday that the COVID-19 relief will end on Jan. 31, 2022. The relief was set to end in September, per Axios.
- Currently, the relief plan includes a freeze on federal student loan payments, which have had a 0% interest rate.
- There have been no collections made on the student loans, too.
When did Biden decide to extend student debt relief?
There was some speculation that this announcement was coming. Cardona said Thursday that details were coming “very soon” since the student debt relief was set to end on Sept. 30, per Forbes.
- “I don’t have any information today. But this is a priority for us. Borrowers are in need of information, and they are also in need of relief,” Cardona said, according to Forbes.
However, some Democratic leaders continue to call for Biden to erase student debt entirely.