President Biden extends student loan payment moratorium

The Biden Administration announced Friday, it is extending the moratorium on student loan payments, which is expected to be the final extension as the economy recovers.

The moratorium was expected to end in September but has now been extended through January 31, 2022.

As the pause continues, interest rates will remain at 0%, and debt collection efforts will be suspended.

This is the second extension the president has issued while in office.

Former President Donald Trump originally suspended federal student loan payments in March 2020 and later extended it through January 2021.

President Biden said with this action, the Department of Education and borrowers will have more time and certainty as they prepare to restart student loan payments. He also wants to ensure a smoother transition that helps prevent loan defaults and delinquencies.

The Education Department also said this is the final extension for this moratorium, and borrowers now have a definitive end date to plan for.