Student Loan Payments to Restart After August 31, 2022
Washington-April 15, 2022: On April 6, the Department announced an extension of the pause on student loan repayment, interest, and collections through August 31, 2022.
While the economy continues to improve, and COVID-19 cases continue to decline, President Biden’s decision to extend the pause is consistent with his call to sensibly respond to the pandemic and its economic consequences, as well as allow for the responsible phase-down of federal emergency relief (President’s video and Department’s Twitter thread).
This extension provides additional time for borrowers to plan for the resumption of payments, reducing the risk of delinquency and defaults after restart. During the extension period, the Department will continue to assess the financial impacts of the pandemic on borrowers and prepare to transition them back smoothly into repayment. This includes allowing all borrowers to receive a “fresh start” on repayment by allowing them to re-enter in good standing, regardless of their pre-pause status. Also, the agency will continue to provide loan relief, including for borrowers who have been defrauded by their institutions and those who are eligible for Public Service Loan Forgiveness.
“The Department…is committed to ensuring that student loan borrowers have a smooth transition back to repayment,” emphasized Secretary Cardona. “This additional extension will allow borrowers to gain more financial security as the economy continues to improve and as the nation continues to recover from the pandemic. It remains a top priority of the Biden Administration to support students, families, and borrowers -- especially those disproportionately impacted by the pandemic. During the pause, we will continue our preparations to give borrowers a fresh start and ensure that all borrowers have access to repayment plans that meet their financial situations and needs.”