January 1, White House Extends COVID-era Measure

The White House has once again extended the pause on federal student loan payments until August 31.

“To enable Americans to continue to get back on their feet after two of the hardest years this nation has ever faced, my Administration is extending the pause on federal student loan repayments through August 31st, 2022. That additional time will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs,” President Joe Biden said.

The pause was set to expire on May 1, but Biden faced mounting pressure from congressional Democrats as the date loomed.

The measure was first put into place by former President Donald Trump in March 2020, pausing payments and the accrual of interest on federal student loans.

According to the Department of Education, the student loan moratorium has cost the federal government more than $100 billion.

Some Republican lawmakers have criticized Biden’s decision to extend the pause.

“President Biden’s perpetual student loan payment moratorium is an insult to every American who responsibly paid debts,” Sen. Tom Cotton (R-AR) said. “There’s no free lunch: this reckless move puts taxpayers on the hook for billions.”

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White House to extend student loan moratorium once again