The White House delivers positive news for college graduates across the country, as President Biden now says that his pause on student loan repayment will be pushed back until May of next year.
The news was confirmed Wednesday, just over a week after the Biden administration announced the restart of student loan repayments beginning as soon as February of next year, which came as disappointing news for college graduates that have confronted financial barriers during the pandemic.
The president says that the Department of Education will remain working closely with loan borrowers in the meantime leading up to May 1.
"Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery," Biden stated. "Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation," said the president in a statement.
If Wednesday's decision by the president holds through May 1 of next year, the pause on most federal student loans would exceed over the two year mark since repayments were initially frozen. Interest on loan student recipients were also placed on hold since March of 2020, along with interest rates on defaulted debt linked to collections.
President Biden has also received continuous pressure from fellow Democrats such as Senate Majority Leader Chuck Schumer, Senator Elizabeth Warren and Congresswoman Ayanna Pressley, to not only continue to extend the loan repayment date, but to cancel up to $50,000 dollars of federal student loans for each recipient.
"Extending the pause will help millions of Americans make ends meet, especially as we overcome the Omicron variant," Schumer, Warren and Pressley collectively announced in a statement.
This announcement comes as federal health officials across the country fear an increase of case numbers linked to the Omicron variant will continue to grow nation-wide.
