At least for a few months that is giving a further band aid to an already sinking ship. On Tuesday, the White House announced that under Joe Biden ‘s orders — student loan pauses are now extended through 1 May. The U.S government acknowledged in the announcement that most people are no where near financially recovered from the pandemic, and therefore it would be wildly cruel to let them be reinstated at least right now.
Tens of millions of Americans are understood to be in default already on their loans despite the pause or not.
“Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery,” Biden said in a statement according to CNN. “Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.”
They were initially set to restart on 1 February.