8:42 AM PDT, August 7, 2021
The Biden administration has announced that it is extending the freeze on federal student loan payments until January 31, according to CNN.
“On my first day in office, I directed the Department of Education to pause federal student loan repayments for millions of Americans until September,” President Biden wrote on Twitter.
“The pause has been a critical lifeline — that’s why today, my administration is extending the pause until January 31, 2022.”
It does stress, though, that this will be the last time.
“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,” Miguel Cardona, Education Secretary, said in a statement.
For federally held loans, this pause on payments and interest will happen automatically.
The former administration first suspended the federal loan payments in March 2020, at the start of the pandemic. Since then, it has continuously been extended. Before this current extension, payments were to resume in October.
“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” Cardona added.