The White House announced Friday what they will be a final extension of the pause on federally-held student loan repayment, interest, and collections until January 31, 2022.
U.S. Department of Education officials said the additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart.
“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” U.S. Secretary of Education Miguel Cardona said in a statement. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment. It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education.”
The federal government first approved the pause in March 2020, at the start of the coronavirus pandemic as the nation grappled with the economic impact of the crisis. The student loan debt for Americans is a combined $1.6 trillion, more than the nation’s total auto loan debt. Georgia borrowers account for $66 billion of that.
The pause on payments was scheduled to expire at the end of September.
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