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White House officially extends student loan repayment pause until August

The Biden administration will continue to extend a pause on student loan payments

SHARE White House officially extends student loan repayment pause until August
President Joe Biden speaks in Washington.

President Joe Biden speaks during an event about the Affordable Care Act, in the East Room of the White House in Washington, Tuesday, April 5, 2022.

Carolyn Kaster, Associated Press

The White House officially extended the pause on student loan repayments until the end of August.

Driving the news: President Joe Biden announced in a new statement that the student loan repayment freeze will be extended until Aug. 31, 2022.

Why it matters: Biden said the freeze will be extended in order to help those who have not financially recovered from the COVID-19 pandemic.

  • He said, “we are still recovering from the pandemic and the unprecedented economic disruption it caused.”
  • The pause will be made “to enable Americans to continue to get back on their feet after two of the hardest years this nation has ever faced.”
  • “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.”

What to watch: Biden said that the Department of Education will look for “additional flexibilities and support for all borrowers.”

The bigger picture: According to NPR, this is the seventh time that the student loan freeze has been extended under the Trump and Biden administrations.

  • Democrats pushed for the repayment freeze to extend until 2023.
  • “This shorter extension also puts Biden in the precarious political position of asking millions of voters to resume loan payments on the eve of November’s midterm elections – unless he does what many experts expect him to do and simply issues another extension over the summer,” according to NPR.