It’s official: Biden announces extension of student loan repayment freeze

Since taking office, Biden has expanded loan exemptions for students who work in the public sector, those who have been defrauded by for-profit colleges, and borrowers who are now permanently disabled.

President Joe Biden on Wednesday, April 6, announced a pause in federal student loan repayments — extending the payment pause until August 31. Originally, the freeze was set to expire on May 1.

Borrowers’ balances have been frozen for more than two years since March 2020. During that time, interest has stopped accruing and collections on defaulted debt have been suspended.

Since taking office, Biden has expanded loan exemptions for students who work in the public sector, those who have been defrauded by for-profit colleges, and borrowers who are now permanently disabled.

Officials said these initiatives have provided more than $17 billion in borrower assistance.

Here is Biden’s official statement:

In January 2021, on my first day in office, I asked the Department of Education to suspend federal student loan repayments until September of that year. At the time, our economy was barely growing. Less than 1% of Americans were fully vaccinated. Millions of Americans were struggling to stay afloat. Thanks to this break in reimbursements, 41 million Americans were able to breathe a little easier during some of the toughest days of the COVID-19 pandemic.

America is stronger today than we were a year ago and we will be stronger in a year than we are today. Through our plan to build the economy from Bottom up and bottom up, the economy has created 7.9 million jobs since I took office, the biggest year of job growth on record. We saw the fastest economic growth in nearly 40 years. Over 217 million Americans are now fully immunized and 2 out of 3 eligible adults are immunized. We have the tools we need to move forward safely and return to more normal routines.

However, as I recently recognized extension of the national COVID-19 campaign urgently, we are still recovering from the pandemic and the unprecedented economic disruption it has caused. so ready payments were expected to resume as planned in May, analysis of recent data from the The Federal Reserve suggests that millions of student borrowers would face significant economic difficulties and delinquencies and defaults could threaten the financial stability of Americans.

Thus, to allow the Americans to continue to recover after two the toughest years this nation has ever seen, my administration is extending the pause on federal student loan repayments until August 31, 2022. This additional time will help borrowers achieve greater financial security and support the Ministry of Education’s efforts to keep improving student loan programs. As part of this transition, the Department of Education will provide additional flexibilities and support to all borrowers.

I ask all student borrowers to work with the Department of Education to prepare for a return to repayment, review the forgiveness of public service loans, and explore other options to reduce their payments. Vice President Harris and I are focused on supporting borrowers in need and believe this pause will provide a continued lifeline as we recover and rebuild from the pandemic.

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