President Biden Extends Student Loan Payment Pause Through May 1

President Biden Extends Student Loan Payment Pause Through May 1

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President Joe Biden is expected to announce several Executive Orders on Gun Control. Image: Twitter/@inc_brands

For those upset about President Biden not canceling student loan debt, the Biden administration is responding by extending the payment freeze through May 2022.

On Wednesday, President Biden announced that pandemic relief will be extended once again until May 1, NPR reports. The new decision will affect about 41 million student loan borrowers. Biden’s latest extension comes after the CARES Act first placed holds on loan payments, interest accruals, and collections on defaulted federal student loans.

Under the Trump administration, the hold continued after the pandemic hit, and now Biden has opted to extend the freeze once again.

“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,” President Biden wrote in a statement.

Before the Wednesday announcement, student loan payments were set to resume in February 2022. But now, borrowers of federal loans will have an extra three months to prepare for repayment.

While it’s not the outcome borrowers many were hoping for, it is an aid in allowing debtors to arrange their finances without having to deal with paying the loans in the next five months, Politico reports.

“Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery,” Biden said.

“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’s decision comes after Democrats urged the president to extend student loan relief as the pandemic continues to loom on, CNN reports.

“Extending the pause will help millions of Americans make ends meet, especially as we overcome the Omicron variant,” Senate Majority Leader Chuck Schumer of New York, Sen. Elizabeth Warren, and Rep. Ayanna Pressley, both of Massachusetts, said in a statement.

Borrowers are still encouraged to prepare for repayments after enjoying the freeze that kicked off in March 2020.