The Biden Administration will extend the two-year pause on student loan payments until May 1, 2022, according to an announcement from the White House.
The May deadline is a 180 from the administration’s previous stance, which would have lifted the moratorium on Jan. 31. However, many Democrats have vehemently expressed their disagreement with the White House’s original January date and student debt repayment in general. The rise of Omicron and another slump in economic recovery prompted the change.
President Biden released the following statement:
“[T]oday my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery.”
Senate Majority Leader Chuck Schumer and Democratic Senator Elizabeth Warren shared their own statement:
“Extending the pause will help millions of Americans make ends meet, especially as we overcome the Omicron variant. We continue to call on President Biden to take executive action to cancel $50,000 in student debt, which will help close the racial wealth gap for borrowers and accelerate our economic recovery.”
Do you have student debt? 💡 Here’s CNBC with what to expect once loan repayments resume.