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Biden administration extends pause on federal student loan payments through January

by todayminutes
August 7, 2021
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The Education Department said Friday it will extend the suspension of federal student loan payments through January 31, 2022, marking the third time the agency has given borrowers breathing room amid the pandemic. The Department says it will be the final extension offered to borrowers.

The moratorium was set to expire on Sept. 30, but Congressional Democrats had urged the Biden administration to push back the date as the public health crisis has left many Americans struggling to regain their financial footing. People familiar with the matter who were not authorized to speak publicly said the Education Department had also pressed the White House for a final extension to help borrowers smoothly transition back into repayment.

Those efforts paid off.

“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” Education Secretary Miguel Cardona said Friday. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for a restart and ensure a smooth pathway back to repayment.”

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