Personal finance

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.

“[W]e know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments,” President Joe Biden said in a statement on Wednesday.

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, on 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.

Recent polling of student loan borrowers found that around 90% are still not financially secure enough 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 bill is around $400 a month.

This is breaking news. Please check back for updates.

Products You May Like

Articles You May Like

Nearly 6 in 10 donors may give more to charity despite economic fears, study finds
How the Section 232 Tariffs on Steel and Aluminum Harmed the Economy
Bond yields soar as markets weigh threat of a recession. What it means for your investments
56% of Americans think the U.S. is already in a recession. These 4 steps can help protect your finances in a downturn
GM to sell up to 175,000 electric vehicles to Hertz through 2027

Leave a Reply

Your email address will not be published.