Biden Extends Pause On Federal Student Loan Payments Until May 1

WASHINGTON, DC — The Biden administration on Wednesday announced it will extend a pause on federal student loan payments until May 1, citing concerns for the U.S. economy as the number of omicron cases in states continues to grow.

The moratorium originally was scheduled to end Feb. 1.

President Joe Biden called the decision an essential step to help borrowers amid ongoing public health challenges, The Washington Post reported.

“Now, while our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — we know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments,” according to reports citing a statement by Biden.

“This is an issue Vice President Harris has been closely focused on, and one we both care deeply about. 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.”

The omicron variant of the coronavirus has given new urgency to the question of whether the moratorium would be extended.

Administration officials initially said the January extension to be the last; however, even as the economy improves, there were concerns borrowers weren't ready to start payments again. Once the moratorium ends, those who were already behind on payments could have wages and benefits taken away as part of debt collection efforts.

The new extension applies to more than 36 million Americans who have student loans held by the federal government. Their collective debt totals more than $1.37 trillion, according to the latest Education Department data. About a third of borrowers are in default or delinquency and the average monthly payment is $400 a month.

Officials said the pause also helps about 5 million other borrowers currently in school who are not yet paying back loans but are accruing interest.

The Associated Press contributed reporting to this story.