President Joe Biden extended the federal pause on student loan repayments for an additional 90 days, the White House announced Wednesday.
The Biden administration originally stated that its August extension of the student loan moratorium would be the final extension. The pause will now last until May 2022. The U.S. has had the moratorium in place since the earliest days of the pandemic under former President Donald Trump. (RELATED: Biden Admin Consulted Prolific Conspiracy Theorist Laurence Tribe On CDC Eviction Moratorium)
“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 said in a statement.
President Joe Biden answers questions after speaking about the status of the country’s fight against COVID-19 on Tuesday. (Brendan Smialowski/AFP via Getty Images)
“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,” he added.
White House press secretary Jen Psaki indicated earlier in December that the Biden administration still intended to restart student loan payments beginning in February.
Leading Democrats on Capitol Hill urged Biden to hold off on restarting loan payments until the U.S. economy reached pre-pandemic levels of employment, according to Politico.
With BBB delayed, Child Tax Credits will expire and student loans will restart within a matter of weeks. Working families could lose thousands of $/mo just as prices are rising.
That alone is reason for @POTUS to act on student loans ASAP – w/ either moratorium or cancellation.
— Alexandria Ocasio-Cortez (@AOC) December 20, 2021
Democratic New York Rep. Alexandria Ocasio-Cortez also pressed Biden to extend the moratorium.