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Biden Administration extends freeze on student loan payments through April

Joe Biden
Posted at 8:06 AM, Dec 22, 2021
and last updated 2021-12-22 12:34:28-05

The Biden Administration has extended the moratorium on federal student loan payments until May 1, The Associated Press reports.

According to the AP, interest rates on student loans will remain at 0% and debt collection efforts will remain suspended.

Payments were slated to resume in February.

Borrowers have not been liable to make payments on outstanding loans since the Trump Administration ordered the freeze in the early days of the pandemic.

In August, the White House extended the pause on student loan payments through January 2022. In that announcement, the Biden Administration noted that it would be the final time it would extend the moratorium.

Last week, White House press secretary Jen Psaki said that the administration had no plans to extend the moratorium, saying that a "smooth transition back into repayment is a high priority for the administration." She also noted that the Department of Education was monitoring the spread of the omicron variant, which has caused case rates to surge across the country in recent days.

According to Scripps political reporter Joe St. George, an estimated $110 billion is believed to be in the hands of Americans and not the federal government as a result of the no-payment pandemic policy.

Shortly after the 2020 election, then president-elect Joe Biden proposed canceling at least $10,000 in student debt per borrower. While his administration has not fulfilled that promise, the White House has taken some steps to alleviate debt for those working in the public sector and taken other actions to alleviate pressure on borrowers.

Editor's note: A previous version of this story incorrectly stated that the Biden Administration has taken no steps to cancel student debt.