President Joe Biden is once again extending the pause on federal student debt repayments, this time through Aug. 31.
The pause was initiated with the …
President Joe Biden is once again extending the pause on federal student debt repayments, this time through Aug.31. The pause was initiated with the passage of the CARES Act in March of 2020 under then-President Donald Trump and Biden has maintained the pause throughout his time in office. In total it has saved roughly 40 million borrowers an estimated $195 billion in waived payments through April 2022, according to the Federal Reserve (Fed). Biden last extended the pause on repayments last December. The federal government was set to resume collections on May 1 on the $1.3 trillion in national outstanding direct student loan debt. Biden announced Wednesday he’s now extending that deadline in a statement that says if loan payments were to resume in May, borrowers would face “significant economic hardship,” that could “threaten Americans’ financial stability.
