December 23, 2021
Student loans may be paused, but here’s why President Joe Biden extended student loan relief.
Here’s what you need to know — and what it means for your student loans.
In a surprising move, Biden shocked student loan borrowers and advocates alike when he decided yesterday suddenly to extend student loan relief for another 90 days. This is Biden’s third extension of the student loan relief from the Cares Act, the $2.2 trillion stimulus bill that Congress passed in March 2020, which was scheduled to expire on January 31, 2022. Through May 1, 2022, federal student loan borrowers will not be required to make federal student loan payments, interest rates on federal student loans will be temporarily set to 0%, and student loan debt in default won’t be collected. Previously, Biden had warned student loan borrowers for months that the second extension was the final one, and that student loan borrowers should be prepared to restart student loan payments on February 1. (Biden confirms end of student loan relief). Why did Biden change his mind? Here are some potential reasons why.