Biden is canceling up to $10K in student loans and all federal loans are paused until 12/31
The Biden administration has extended the pause on federal student loan payments through August 31, 2022.
The 0% interest and $0 payment relief was set to expire May 1st for an estimated 41 million Americans with federal loans.
This doesn’t look like the end of changes related to student loans this year. Politico reports,“A range of Democrats had urged the Biden administration to extend the pause on payments through at least the end of 2022, which would be long enough to avoid requiring borrowers to make payments just before the midterm elections. Just last week, nearly 100 lawmakers led by Sen. Elizabeth Warren (D-Mass.) and Majority Leader Chuck Schumer sent a letter to Biden asking him to extend the pause “until at least the end of the year.”
This is a breaking story and we will update further as we receive more information.
Prior to this announcement, payments were set to resume in May. Now this will be extended to Aug 31, 2022.
To see a breakdown of your federal options as a student loan borrower, sign up for Snowball to see additional resources here.