US official says the White House plans to extend the pandemic pause on student loan repayments through Aug. 31.
WASHINGTON — The Biden administration plans to freeze federal student loan payments through Aug. 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic, according to an administration official familiar with the White House’s decision-making.
Borrowers will not be asked to make payments until after Aug. 31, and interest rates are expected to remain at 0% during that period.Democrats on education panels in the House and Senate recently urged President Joe Biden to extend the moratorium through the end of the year, citing continued economic upheaval.
Murray called on the Biden administration to lift all borrowers out of default to provide a “fresh start” following the pandemic. “Serious delinquency rates for student debt could snap back from historic lows to their previous highs in which 10% or more of the debt was past due,” the bank said.
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