Biden administration extends student loan moratorium to Aug. 31

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The Biden administration announced on Wednesday that the student loan moratorium will be extended until Aug. 31, 2022.

“I know folks were hit hard by this pandemic. And though we’ve come a long way in the last year, we’re still recovering from the economic crisis it caused,” Biden said in a video posted to his Twitter account. “The continued pause will help Americans breathe a little easier as we recover and rebuild from the pandemic.”

Additionally, the U.S. Department of Education released a plan to use the ongoing moratorium to restore the accounts of roughly 7 million borrowers who are in default to good standing.

This is the seventh time the student loan moratorium has been extended since the onset of the pandemic. The current extension was set to expire on May 1.

“We are still recovering from the pandemic and the unprecedented economic disruption it caused,” Biden said in a statement announcing the extension. “If loan payments were to resume on schedule in May, analysis of recent data from the Federal Reserve suggests that millions of student loan borrowers would face significant economic hardship, and delinquencies and defaults could threaten Americans’ financial stability.”