JUST IN: Biden Extends Pause on Student Loan Payments Until May 1, 2022
The Biden administration has extended the pause on student loan repayments an additional 90 days, until May 1, 2022, announcing the new deadline in a statement released on Wednesday.
CNN’s Phil Mattingly reported on the new development during At This Hour With Kate Bolduan, noting that the recent surge from the Omicron variant was increasing the pressure to extend the repayment date past the current pause that was set to lapse on February 1.
There was “tremendous pressure from outside advocates, but most importantly from Democratic lawmakers” in both the House and Senate, reported Mattingly, specifically from Senate Majority Leader Chuck Schumer (D-NY), to extend the loan forbearance.
Mattingly read from Biden’s statement to note that the Omicron surge and current economic conditions had driven the decision, hoping that this extension would help “manage the ongoing pandemic and further strengthen our economic recovery.”
“This is a very big deal,” said Mattingly. “I think it marks a shift of the administration recognizing both the reality on the policy side of things but also the political reality here, Kate.”
Today, 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.
— President Biden (@POTUS) December 22, 2021
The full text of Biden’s statement is below:
FOR IMMEDIATE RELEASE
December 22, 2021
Statement by President Joe Biden Extending the Pause on Student Loan Repayment an Additional 90 Days
When I came into office, we were facing a number of unprecedented crises. Our economy was creating only 50,000 new jobs per month, less than 1 percent of Americans were fully vaccinated, many schools were closed, and Americans across the country were struggling to pay their bills and stay afloat. That is why, on my very first day as President, I directed the Department of Education to pause federal student loan repayments through September. In August, my Administration once again extended the pause, through January 31, 2022. That pause has given 41 million Americans badly-needed breathing room during the economic upheaval caused by the global COVID-19 pandemic.
Now, while our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — 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. This is an issue Vice President Harris has been closely focused on, and one we both care deeply about.
Given these considerations, today 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. Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.
As we are taking this action, I’m asking all student loan borrowers to do their part as well: take full advantage of the Department of Education’s resources to help you prepare for payments to resume; look at options to lower your payments through income-based repayment plans; explore public service loan forgiveness; and make sure you are vaccinated and boosted when eligible.
Watch the video above, via CNN.
