The Biden administration extended its pause on student loan payments until January 31st, 2022.
“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,” Secretary of Education Miguel Cardona said in a statement. “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 a restart and ensure a smooth pathway back to repayment.”
Democratic Senators Chuck Schumer and Elizabeth Warren pressured the Biden administration to extend the pause through March of 2022.
A letter to Biden read, “The resumption of payments is presently scheduled to begin on October 1, 2021, but the information we received in our inquiry strongly supports an extension of the pause on student loan payments and interest. The responses to our inquiry indicate that neither student loan borrowers nor student loan servicers are prepared for payments to resume, and servicers will need significant time to ensure that staffing and procedures are ready to provide borrowers with a high level of support.”
In March of 2020, the Trump administration made a financial extension for student loan payments within the CARES Act. The Biden administration continued the extension on their first day in office. The financial extension mirrors the Biden administration’s lax attitude toward the eviction moratorium.
ARTICLE: ANTOINETTE AHO
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: LA TIMES
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