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| Students demanding loan cancelation |
President Joe Biden changed course on Wednesday, extending the moratorium on federal student loan payments until May 1, citing the pandemic's ongoing impact.
In a statement, the President also stated that, while job statistics have increased, he recognizes that millions of borrowers will continue to struggle to make their payments.
"Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery. Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation." The president said.
Borrowers may also consider enrolling in one of the government's income-driven repayment plans in order to prepare for the commencement of payments, according to Biden.
The ban was instituted by former President Donald Trump when the economy struggled in the early days of COVID-19, and it was maintained by Biden. In all, more than 40 million Americans have gone nearly two years without making minimum payments or paying interest on their $1.7 trillion in student loans.
Biden had consistently stated that the freeze will end on February 1, but liberal Democrats and voters had begged with him to prolong it or take steps to cancel their loans. Last week, as the omicron version of COVID-19 spread across the country, pressure mounted on the president to shift direction, and he caved.
The move comes as the national economy experiences record inflation but a 4.2 percent jobless rate, which is approaching the 3.5 percent figure in February 2020 — the month before the epidemic destroyed the economy.
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