White House extends freeze on student loan payments through August 31

Key Takeaways

On April 6, President Biden announced an extension of pandemic relief for federal student loan borrowers through August 31, 2022. The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 (P.L. 116-136) first paused payments, collections on defaulted loans, and interest accumulation on federal loans owned by the U.S. Department of Education (ED) in March 2020; the latest announcement marks the seventh administrative extension of these measures.

Though the White House aimed to resume federal student loan payments on May 1, 2022, the ongoing economic impacts of the pandemic prompted a decision to extend the freeze through the summer. Along with extending the moratorium, ED has also unveiled a plan to waive the rehabilitation process requirements for borrowers in default, which will bring nearly 7 million borrowers who are currently in default back into good standing.

More information about the payment pause and supports for borrowers can be found at StudentAid.gov. NACo will continue to monitor action on federally-owned student loans.