REUTERS/Elizabeth Frantzĭemocrats, meanwhile, are urging the president to do more. President Biden speaks during the South Carolina State University graduation ceremony at Smith Hammond Middleton Memorial Center in Orangeburg, SC, December 17, 2021. 'During the pause, we will continue our preparations to give borrowers a fresh start and to ensure that all borrowers have access to repayment plans that meet their financial situations and needs.' “This additional extension will allow borrowers to gain more financial security as the economy continues to improve and as the nation continues to recover from the COVID-19 pandemic,' Cardona added.

“The Department of Education is committed to ensuring that student loan borrowers have a smooth transition back to repayment,' Secretary of Education Miguel Cardona said in the press release. The pause was set to expire after May 1 after being enacted by former President Donald Trump amid the coronavirus pandemic in March 2020 and extended multiple times by President Biden. As part of this transition, the Department of Education will offer additional flexibilities and support for all borrowers.' That additional time will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs.

In a statement, President Biden stated that 'my Administration is extending the pause on federal student loan repayments through August 31st, 2022. The Biden Administration has forgiven $16 billion in student debt for 680,000 borrowers since the start of his term using programs that were already in place before his presidency began.The Biden administration will officially enact another extension of the pandemic payment pause related to federally-backed student loans through the end of August. President Biden has insisted that any widespread student loan forgiveness go through Congress, although some congressional Democrats urge him to take action by executive order.īiden pledged to forgive $10,000 in student loans for each borrower while on the campaign trail, and some congressional Democrats propose forgiving $50,000 for each student, but neither have happened yet. Private loans constitute 8.4% of the outstanding student loan debt in the U.S. The pause does not apply to private student loans. The Secretary of Education, who is appointed by and answers to the president, has the authority to extend the pause. The student loan pause began in March 2020 and suspended all payments due for federal student loans, stopped the accrual of interest on those loans and suspended involuntary collections to pay for those loans.

Biden pauses student loans