Biden Administration Extends Pause on Loan Payments

The Department of Education on Wednesday announced a 90-day extension of the pause on student loan repayment, interest and collections. The pause had been scheduled to end on Feb. 1, 2022, and will now extend 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,” said a Department of Education press release. “The department will continue its work to transition borrowers smoothly back into repayment, including by improving student loan servicing.”

Secretary of Education Miguel Cardona said, “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.”

Student loan payments have been paused since the onset of the pandemic in March 2020, and that pause has been extended four times (before today’s announcement).

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