Apr 6, 2022 - Politics & Policy

​White House extends student loan repayment freeze through August

President Joe Biden speaks about the Affordable Care Act.
President Biden speaks at a White House event on April 5. Photo: Al Drago/Bloomberg via Getty Images

President Biden on Wednesday extended the pause on federal student loan repayments through Aug. 31, 2022.

Why it matters: The moratorium, which had been scheduled to end on May 1, has allowed millions to postpone payments during the pandemic.

  • It's the sixth time the loan repayment freeze has been extended since it began in March 2020.

What he's saying: "This continued pause will help Americans breathe a little easier as we recover and rebuild from the pandemic," Biden said in a video announcing the decision.

  • "I know folks were hit hard by the pandemic and though we've come a long way in the last year we're still recovering from the economic crisis it caused."
  • "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," Biden said in a statement.

The big picture: Nearly 37 million borrowers have saved about $195 billion from the moratorium through April 2022, according to a report released last month by the Federal Reserve Bank of New York.

  • The same report also found that student loan borrowers who didn’t benefit from the extended moratorium had 33% higher rates of delinquency on other debt (excluding mortgages) than those who did, Axios' Nathan Bomey reports.
  • The Biden administration in December extended its moratorium on student loan payments until May 1, citing the ongoing pandemic.

Go deeper: Return of student loan payments could spell trouble for borrowers

Editor's note: This article has been updated with more details on previous moratorium extensions.

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