Yesterday the Biden administration extended the current pause on student loan payments until May 1. His administration has been able to do this a couple of times with the last time being in August of this year.
Under the action, payments on federal student loans will remain paused through May 1. Interest rates will remain at 0% during that period, and debt collection efforts will be suspended, reports HuffPost.
“We know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments,” says Biden.
According to The New York Times, the extension affects about 41 million borrowers, including nearly 27 million who have not been paying their monthly bill since early 2020.
With the new omicron variant emerging, it is looking like we are far from recovering from the struggles of the pandemic.
The continued pause “will provide critical relief to borrowers who continue to face financial hardships as a result of the pandemic, and will allow our administration to assess the impacts of omicron on student borrowers,” says Education Secretary Miguel Cardona.
Many Democratic lawmakers are all continuing to push even further to cancel student debt.