Pause On Student Loan Payments Is Extended Through May 1
The Biden administration is extending a student loan moratorium that has allowed tens of millions of Americans to put off debt payments during the pandemic.
Payments on federal student loans will remain on pause through May 1, 2022.
Interest rates will remain at zero-percent during that period and debt collection efforts will be suspended.
Those measures have been in place since early in the COVID-19 pandemic but were set to expire Jan. 31, 2022.
“That pause has given 41 million Americans badly-needed breathing room during the economic upheaval caused by the global COVID-19 pandemic,” said Biden in a statement. "Now, while our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — 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. This is an issue Vice President Harris has been closely focused on, and one we both care deeply about.”
Biden's action affects 41 million Americans.
This is the second extension from the Biden administration.