President Joe Biden’s administration announced an extension of the student loan moratorium through August on Wednesday.
The student loan pause, which was initially set to expire on May 1, will now be extended through August 31, the Department of Education (DOE) announced Wednesday. The moratorium has been in place since the start of the pandemic and includes student loan repayment, interest and collections.
“While the economy continues to improve and COVID cases continue to decline, President Biden has made clear the continuing need to respond to the pandemic and its economic consequences, as well as to allow for the responsible phase-down of pandemic relief,” the DOE said in a press release.
The extension will give borrowers time “to plan for the resumption of payments, reducing the risk of delinquency and defaults after restart,” according to the press release. Borrowers with paused loans will get a “‘fresh start’ on repayment by eliminating the impact of delinquency and default and allowing them to reenter repayment in good standing.”
U.S. Secretary of Education Miguel Cardona said the DOE “is committed to ensuring that student loan borrowers have a smooth transition back to repayment,” according to the press release.
“This additional extension will allow borrowers to gain more financial security as the economy continues to improve and as the nation continues to recover from the COVID-19 pandemic,” Cardona added.
Democrats in both chambers of Congress have advocated for an extension of the student loan payment pause, citing concerns of soaring inflation, The Hill reported.
The Biden administration last extended the pause in December. Since the moratorium was first put in place in March 2020, it has been extended five times.
“It remains a top priority for the Biden-Harris Administration to support students, families, and borrowers – especially those disproportionately impacted by the pandemic,” Cardona said in the press release. “During the pause, we will continue our preparations to give borrowers a fresh start and to ensure that all borrowers have access to repayment plans that meet their financial situations and needs.”
The DOE did not respond to the Daily Caller News Foundation’s request for comment.
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