What You Need to Know
- The hold on federal student loan repayments, interest and collections has been extended until Jan. 31, 2022.
- Lawmakers called on President Joe Biden to use his executive authority to cancel $50,000 of student debt.
- The extension is final.
The Biden administration has extended the moratorium on federal student loan repayments, interest and collections until Jan. 31, 2022.
The Department of Education said Friday that the extension is final, and that the “additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart.”
The suspension period was originally set to apply from March 13, 2020 to Sept. 30, 2020, but was subsequently extended to Sept. 30, 2021. During this period, payments were automatically stopped for borrowers with qualifying loans.
“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,” Secretary of Education 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.”