WASHINGTON (NewsNation Now) — The pause on federal student loan payments has been extended until January 31, 2022.
The freeze was put in place at the start of the COVID-19 pandemic in 2020 as the federal government worried millions of debt holders would default on loans due to job loss and the down turned economy.
Education Department officials have extended the pause under the Biden administration and former President Trump’s administration several times.
It most recently was set to expire September 30. The Biden administration said this is the final time they will extend the pause on repayment.
“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 restart and ensure a smooth pathway back to repayment,” said U.S. Secretary of Education Miguel Cardona in a press release announcing the pause.
The Biden administration has been exploring plans to cancel some student debt with Senators Chuck Schumer and Elizabeth Warren advocating eliminating at least $50,000. Biden has said he does not believe he has the authority to cancel more than $10,000 per person. No plans have been solidified in the White House or in Congress to cancel debt for all Americans