Biden-Harris Administration Extends Student Loan Pause Through May 1

 Biden-Harris Administration Extends Student Loan Pause
Through May 1

The U.S. Department of Education announced a 90-day
extension of the pause on student loan repayment, interest, and collections through May 1, 2022.

The extension will allow the Administration to assess the impacts of the Omicron variant on student borrowers and provide additional time for borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart. The Department will continue its work to transition borrowers smoothly back into repayment, including by improving student loan servicing.

“Since Day One of this Administration, the Department
has focused on supporting students and borrowers throughout
the pandemic and ensuring they have the resources they need
to return to repayment successfully,” said U.S. Secretary of
Education Miguel Cardona.

“This additional extension of the repayment pause will
provide critical relief to borrowers who continue to face financial hardships as a result of the pandemic, and will allow our Administration to assess the impacts of Omicron on student
borrowers. As we prepare for the return to repayment in May,
we will continue to provide tools and supports to borrowers
so they can enter into the repayment plan that is responsive to
their financial situation, such as an income-driven repayment
plan. Students and borrowers will always be at the center of
our work at the Department, and we are committed to not
only ensuring a smooth return to repayment, but also increasing accountability and stronger customer service from our loan servicers as borrowers prepare for repayment.”

The pause on student loan payments will help 41 million
borrowers save $5 billion per month. Borrowers are encouraged to use the additional time to ensure their contact information is up to date and to consider enrolling in electronic debit and income-driven repayment plans to support a smooth transition to repayment. More information can be found at StudentAid.gov.

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