In extending the pause, which allows borrowers with federal student loans to skip their monthly payments without penalty, President Joe Biden cited recent research from the New York Federal Reserve showing that many borrowers would have trouble resuming payments. It was the sixth extension of the pause, which was first put in place more than two years ago when the pandemic hit. “That additional time will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs,” Biden said in a statement. He also advised borrowers to use the extra time to look into options such as Public Service Loan Forgiveness—a program that erases student loan debt for public servants. The Biden administration dramatically expanded the program last year to make more people eligible. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
