Biden Administration extends student loan relief

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Biden Administration extends student loan relief

The Biden Administration announced on Friday it is extending its pause on student loan payments and interest through Jan. 31, 2022. 

The Department of Education said it will be its “final extension of the pause on student loan repayment, interest, and collections,” stating they feel it’s a necessary move to allow borrowers more time to plan to begin repayments to avoid defaults and delinquency. 

“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,” Education Secretary 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 restart and ensure a smooth pathway back to repayment. It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education.”

In its press release, the Department noted it has taken a number of steps in an attempt to provide relief for student loan borrowers, including approving $1.5 billion in borrower defense claims, extending full relief to approved claims and approving new types of claims.

Education Secretary Miguel Cardona announced the policy  on Friday.
Education Secretary Miguel Cardona announced the policy on Friday.
Susan Walsh/AP

The extension comes as progressives have ramped up pressure on the administration to move forward with up to $50,000 in student loan forgiveness, a push that has been met with reservations from a sizable number of members within the Democratic caucus.

The pause on payments and interest was slated to expire at the end of September.

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