On my first day in office in January, I ordered the Department of Education to suspend payments of federal student loans to millions of Americans until September. The hiatus has become vital so they don’t have to choose between paying for basic necessities or getting a student loan during the pandemic that turned their lives upside down.
As today’s jobs data show, we have the tools to help us defeat COVID-19 and drive an economic recovery at a record pace. But we know there is still a lot of work to be done, and many people still have a long way to go – especially for one in six adults and one in three young people with federal student loans.
This is why today my administration is extending the federal student loan pause for the last time until January 31, 2022. This will give the Department of Education and borrowers more time and more confidence as they prepare to resume student loan payments. It will also provide a smoother transition that minimizes non-payment and loan delinquencies, which hurt families and undermine our economic recovery.