WASHINGTON — President Joe Biden on Wednesday announced that officials are extending a pause on federal student loan payments implemented amid the coronavirus pandemic through May 1.
“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,” Biden said Wednesday in a statement. “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.”
Officials with the Department of Education said the extended pause will give administration officials time to assess the impact of the quickly spreading omicron variant of COVID-19 on student borrowers. About 41 million people are expected to save $5 billion per month as part of the measure, officials said.
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“As we prepare for the return to repayment in May, we will continue to provide tools and supports to borrowers so they can enter into the repayment plan that is responsive to their financial situation, such as an income-driven repayment plan,” Education Secretary Miguel Cardona said in a statement.
Congress suspended student loan payments in March 2020 while passing the Coronavirus Aid, Relief and Economic Security, or CARES, Act. President Donald Trump subsequently extended the pause through January 2021.
After he took office in January, Biden directed the Department of Education to pause federal student loan payments through September. In August, the pause was extended through Jan. 31.
in the third quarter of 2021, the Federal Reserve estimated that Americans owed more than $1.7 trillion in student loans.
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