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Biden administration extends payment pause for student loan borrowers until May 1

U.S. President Joe Biden speaks during a meeting with his administration’s Supply Chain Disruptions Task Force and private sector CEOs in the South Court Auditorium of the White House December 22, 2021 in Washington, DC.
Drew Angerer | Getty Images

Amid concerns about the new omicron virus, the Biden administration will extend the payment pause for federal student loan borrowers until May 1, 2022.

Yet Democrats and advocates have been pressuring President Joe Biden to give the 42 million Americans with student debt more time. Another virus surge is also adding to worries about the economy and borrowers’ financial circumstances.

Since March 2020, borrowers have been given the option to press the pause button on their monthly bills without interest accruing on their debt. Almost all borrowers have accepted the relief, research shows.

The forbearance was scheduled to expire at the end of next month, Jan. 31, 2022.

Yet Democrats and advocates have been pressuring President Joe Biden to give the 42 million Americans with student debt more time. Another virus surge is also adding to worries about the economy and borrowers’ ability to resume their payments.

Outstanding student loan debt in the U.S. has surpassed $1.7 trillion and burdens Americans more than credit card and auto debt. Around a third of borrowers are in delinquency or default. The average monthly payment is around $400 a month.

Recent polling of student loan borrowers found that around 90% are still not financially secure enough to resume their payments.

This is breaking news. Please check back for updates.

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