The federal student loan repayment pause expires in a month, and the White House is mulling whether to extend the moratorium again.
Will I have to start repaying my loans? Student loan payments — as well as accruing interest — were put on hold in March 2020, with the passage of the CARES Act, the first relief package Congress provided to help businesses and people rebound from the COVID-19 downturn. Both Presidents Donald Trump and Joe Biden extended the moratorium multiple times.
- Loan providers have been told to hold off on sending payment reminders to borrowers, CNBC reported on Tuesday, which could signal the White House is preparing to extend the repayment pause yet again.
- White House Press Secretary Karine Jean-Pierre said earlier this week that the president plans to make a decision by the end of August.
Why it matters: Biden made student loan forgiveness a key part of his presidential campaign, and some are questioning whether he will deliver on this promise. More than 40 million Americans are saddled with school debt.
Key quote: “Look, he understands … what this means for families, how burdensome this could be. I just don’t have anything more to share,” said Jean-Pierre when asked if Biden is close to a decision on student debt.