The Biden administration announced on Wednesday another extension of the Covid-19 federal student loan forbearance program. The pause on payments and interest accrual, which had originally been scheduled to end on Jan. 31, will now be extended through May 1, 2022.
“We know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments,” President Biden said in a statement.
The payment pause originally began in March 2020, when federal student loan payments were paused and interest rates were set to 0%. Collections for defaulted loans are also paused and those enrolled in Public Service Loan Forgiveness (PSLF) are able to count the time in forbearance toward their eligible payments.
The most recent extension is the latest in a series of updates to the Covid-19 loan forbearance. Both the Trump and Biden administrations extended the program multiple times. In August, President Biden announced that he was extending the student loan relief one final time until the end of January. As late as last week, the administration hadn’t decided whether it would extend the program.