The moratorium on student loan repayments is set to expire on August 31, 2022.
After more than two years of paused payments, federal loan payments will resume September 1, 2022.
About the payment pause
If the federal government doesn’t make any changes, student loan payments will resume on September 1, 2022. The first federal student loan deferment was a part of the CARES Act stimulus bill that was passed in March 2020. The moratorium on student loans started in response to the Covid-19 pandemic. President Biden has extended the pause more than once.
Initially the freeze was intended to help borrowers keep more of their money during the pandemic– because so many people were struggling financially. However, many Americans are still struggling. The Federal Reserve found that 43 million Americans have student loan debt, and it totals over $1.7 trillion.
Originally, under the CARES Act, student loan payments were set to resume on September 30, 2020, but the Trump administration extended it twice– which lasted until January 31, 2021. Since President Biden took office, the student loan moratorium was extended four times.
Although many borrowers are hoping for another extension, it is unclear if further extension is under consideration.