Last Friday, August 6, 2021, the Biden administration announced that they would be extending the student loan pause, which was previously set to expire at the end of September. But now, it was extended to January 31, 2022. The student loan moratorium has suspended payments, frozen interest, and postponed collections on most federal student loans since March 2020.
Here’s what student loan borrowers need to know.
Biden Administration Says This Is The ‘Final’ Extension Of the Student Loan Pause
The Biden administration mentioned this would be the “final” extension of student loan relief to “give students and borrowers the time they need” to “restart” repayment. While there is no legal requirement that this be the final extension, and anything is possible in early 2022, the Biden administration seems to clarify that borrowers should expect to resume repayment by February.
Other Student Loans Still Not Covered By The Student Loan Pause
President Biden did not expand the coverage of the student loan moratorium when he extended the relief into 2022. As a result, only government-held federal student loans, and FFEL-program student loans in default, are covered by the extension. FFEL-program federal student loans in good standing, federal Perkins loans, and private student loans are still excluded from relief. Read More
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