WASHINGTON (WTVO) — The Biden administration will extend the pause on federal student loan payments until January 31st, 2022, according to Forbes.
The student loan moratorium, put in place to offset a potential loss of income due to COVID-19 lockdowns, was set to expire on September 30th, 2021.
Student loan advocates, along with lawmakers in Congress, have voiced concern that loan services may not be able to handle the transition while the economy struggles to recover.
“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” said Education Secretary Miguel Cardona in a statement on Friday. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment.”
Progressive activists hope that Biden will use the extra time during the extension to cancel student loan debt.
“While today’s announcement provides some financial security for borrowers and their families as they recover from job losses, reduced hours, or shut down businesses, the reality is that the President can do much more,” said Natalia Abrams, executive director of Student Debt Crisis in a statement. “President Biden has the legal authority to cancel student debt through executive action and we are building an unprecedented movement urging him to take such action before payments resume on January 31, 2022.”