White House expected to extend pause on student loan repayment through August 31
The Biden administration is expected to announce an extension of the federal student loan payment pause Wednesday, according to an administration official familiar with the White House's decision-making.
The move would delay the repayment of student loans until August 31. The payment pause was previously slated to end May 1.
Roughly 37 million student loan borrowers have been in limbo for several months over whether the payment pause would be extended.
For many of them, it would have been the first time they would have had to start making student loan payments since the pause began at the start of the coronavirus pandemic in March 2020.
The Biden administration has already extended the federal student loan payment pause several times. Most recently, in December,
it pushed the deadline back 90 days from the end of January to May despite claiming earlier when they extended over the summer that it would be the "final" extension.
This comes as a group of Democratic lawmakers at the end of March including Senate Majority Leader Chuck Schumer,
Senator Elizabeth Warren, and House Majority Whip Jim Clyburn sent a letter to the president calling on him to delay payments resuming until at least the end of the year,
noting it saved borrowers an average $393 a month during the pandemic. That same group of Democratic lawmakers have also called on the president to cancel student loan debt.
We recognize that extending the payment pause is important to borrowers struggling to shoulder the harm caused by the pandemic, economic shocks and inflation.
However, President Biden's piecemeal, short term approach is not enough to meet these challenging times,"