The Biden administration has extended COVID-19 student debt relief through the end of January 2022, the Department of Education announced Friday.
“This will give the Department of Education and borrowers more time and more certainty as they prepare to restart student loan payments,” Biden said in a statement. “It will also ensure a smoother transition that minimizes loan defaults and delinquencies that hurt families and undermine our economic recovery.”
This is to be the final extension of a freeze in student loan payments, though the administration announced a modified eviction moratorium extension earlier this week and the White House signaled Friday that it might be open to continuing additional unemployment measures.
Both of these pandemic measures were expected to be allowed to lapse, only for President Joe Biden to respond to the delta variant (and backlash from the most liberal wing of his own party) by reconsidering.
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The student debt announcement means there will be 0% interest rates and that a halt to certain collection efforts on defaulted student loans will continue until early next year. This relief was set to expire at the end of September.
“On my first day in office in January, I directed the Department of Education to pause federal student loan repayments for millions of Americans through September,” Biden said. “The pause has been a critical lifeline so they don’t have to choose between paying for basic necessities or their student loan during the pandemic that upended their lives.”
Biden has faced pressure from some Democrats to cancel student debt.
“This is great news for millions,” tweeted Rep. Pramila Jayapal, a Washington Democrat who co-chairs the House Progressive Caucus. “Next step: cancel at least $50,000 of student loan debt per borrower.” She added that Biden “can and must” do this.
“I welcome the news that President Biden will heed our calls to extend the student loan payment pause until January,” tweeted Rep. Mondaire Jones, a New York Democrat and progressive. “This will provide much-needed relief for millions of families. He must now use this same authority to cancel student debt.”
“The White House heard your voice,” tweeted the left-wing organization Public Citizen. “Organizing works. Now, let’s cancel student debt.”
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Biden again extended the eviction moratorium, despite questions about the Centers for Disease Control and Prevention’s legal authority to regulate on this matter, after Congress failed to pass legislation.
The White House also touted Friday’s jobs report as evidence that the additional unemployment benefits might not be hurting the labor market, suggesting that the data from Republican-led states that have ended them does not support this either. Press secretary Jen Psaki said no final decision had been made.
