White House to extend student loan pause through August

WASHINGTON (AP) — The Biden administration plans to freeze federal student loan payments through Aug. 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic.

The decision was confirmed by an administration official familiar with the White House’s decision-making.

Student loan payments were scheduled to resume May 1 after being halted since early in the pandemic.

But following calls from Democrats in Congress, the White House plans to give borrowers additional time to prepare for payments.

The decision was first reported by Bloomberg.

The action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government.