President Biden Freezes Student Loan Repayments for Eligible Borrows

Josiah LeCompte
December 27, 2021
FEMA announces Program offering funeral assistance to families burying their loved ones due to Covid-19
December 27, 2021
Josiah LeCompte
December 27, 2021
FEMA announces Program offering funeral assistance to families burying their loved ones due to Covid-19
December 27, 2021

President Joe Biden has announced that he is pausing loan payments and setting interest rates to 0% for eligible federal student loans through May 1, 2022. In August, The U.S Department of Education announced a final extension of the student loan repayment pause until Jan. 31, however, the extension comes as Covid-19 cases continue to increase across the U.S.


As promised during his campaign for presidency, Biden extended loan repayments once assuming office. He then announced a “final extension” in August, and ultimately extended the pause for an additional 90 days.

“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 written statement.

“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,” Biden added.

The pause on student loan payments will help 41 million borrowers save $5 billion per month. Borrowers are encouraged to use the additional time to ensure their contact information is up to date and to consider enrolling in electronic debit and income-driven repayment plans to support a smooth transition to repayment.

  • The pause includes the following relief measures for eligible loans:

  • A suspension of loan repayments


  • A 0% Interest Rate

  • Stopped collections on defaulted loans.

President Biden’s decision to extend loan repayments is one of a series of steps the Biden-Harris Administration has taken to support students and borrowers, make higher education more affordable, and improve student loan servicing, including providing nearly $13 billion in targeted loan relief to over 640,000 borrowers. Actions within that include:

  • Revamping the Public Service Loan Forgiveness program in October, which has already provided $2.4 billion in loan relief to 38,000 borrowers. As part of that effort, the Department implemented a Limited PSLF Waiver to count all prior payments made by student borrowers toward PSLF, regardless of the loan program. Borrowers who are working in public service but have not yet applied for PSLF should do so before October 31, 2022, and can find out more at StudentAid.gov/PSLF.

  • Providing $7.0 billion in relief for 401,000 borrowers who have a total and permanent disability.

  • Approving $1.5 billion in borrower defense claims, including extending full relief to approved claims and approving new types of claims.

  • Providing $1.26 billion in closed school discharges to 107,000 borrowers who attended the now-defunct ITT Technical Institute.

  • Helping 30,000 small business owners with student loans seeking help from the Paycheck Protection Program.

Amid the surprise student loan extension, President Biden urges borrowers to use this time to effectively plan and prepare for payment resumption slated for May. “As we are taking this action, I’m asking all student loan borrowers to do their part as well: take full advantage of the Department of Education’s resources to help you prepare for payments to resume; look at options to lower your payments through income-based repayment plans; explore public service loan forgiveness; and make sure you are vaccinated and boosted when eligible.”

Not sure if you qualify for the loan repayment extension? The U.S Department of Education has provided a list of eligible and ineligible loans here.

Additional information can be found at StudentAid.gov.