The moratorium on student loan payments in the United States has been extended 90 days.
The moratorium on student loan payments, which was set to expire in late-January, will now run through May 1, 2022.
This means no borrowers will need to make payments, or be punished with growing interest if they continue to not make payments.
The extension does not prevent borrowers from making payments against loans if they choose. This extension also does not cancel student loans.
The extension comes after days of pressure from Democrats in Washington, D.C. who were frustrated that President Joe Biden didn’t appear willing to resume student loan payments, which had been paused since the start of the coronavirus pandemic.
“When I came into office, we were facing a number of unprecedented crises. Our economy was creating only 50,000 new jobs per month, less than 1 percent of Americans were fully vaccinated, many schools were closed, and Americans across the country were struggling to pay their bills and stay afloat. That is why, on my very first day as President, I directed the Department of Education to pause federal student loan repayments through September. In August, my Administration once again extended the pause, through January 31, 2022. That pause has given 41 million Americans badly-needed breathing room during the economic upheaval caused by the global COVID-19 pandemic,” Biden said in a statement. “Now, while our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — 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. This is an issue Vice President Harris has been closely focused on, and one we both care deeply about.”
Biden said the pause would continue as Omicron management efforts continue.
“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,” Biden added. “As we are taking this action, I’m asking all student loan borrowers to do their part as well: take full advantage of the Department of Education’s resources to help you prepare for payments to resume; look at options to lower your payments through income-based repayment plans; explore public service loan forgiveness; and make sure you are vaccinated and boosted when eligible.”