President Joe Biden’s administration announced on Friday that the suspension of federal student loan payments will last until January 2022, stating that this will be the last time the suspension will be extended.
“The pause in payments was a lifeline, allowing millions of Americans to focus on their families, health, and finances instead of student loans during a national emergency.” Education Minister Miguel Cardona said in a statement, Bloomberg reported. “As our nation’s economy continues to recover from a deep pit, this final extension will give students and borrowers the time they need to plan a restart and ensure a smooth return to repayment.”
The renewal means that payments will not be made until February 1, 2022 and will remain 0% interest rate and a freeze on the collection of outstanding debt, according to the Washington Post.
In March 2020, Congress passed a coronavirus relief package that first suspended payments on student loans until September. The exemption was extended by the administration of former President Donald Trump until January 31 of this year, and Biden extended freeze days before its expiration, while the suspension is extended until the next month.
Senator Elizabeth Warren, Democrat from Massachusetts, formerly urged Biden to cancel student loan debt, praised the move.
“Sep. Chuck Schumer, Rep. Ayanna Pressly, and I are delighted that the Biden administration has heard our call for an extended pause in federal student loans. Tens of millions of borrowers in need can breathe a sigh of relief, ” Warren tweeted…
Student loan advocates have also called on the Biden administration to continue helping borrowers.
“While today’s announcement provides some financial security for borrowers and their families as they recover from job losses, shorter working hours or business closures, there is much more that the president can actually do,” said Natalia Abrams, CEO Student debt crisis in the statement. “President Biden has the legal authority to cancel student arrears through the executive branch, and we are creating an unprecedented movement to urge him to take such action before payments resume on January 31, 2022.”