Loan Repayment Pause to be Extended Through August

The Biden administration is planning to extend a pause on federal student loan repayments through August 31st and that announcement could come as soon as today. The freeze which has been in place since the beginning of the pandemic was set to expire at the beginning of May. Borrower balances have been frozen with no payments due on most federal student loans since March 2020 and during this time, interest has stopped adding up and collections on defaulted debt have been on hold. Both President Biden and former President Trump have previously taken action to extend the pause, with Biden moving the restart date three different times. Last week, dozens of Democratic lawmakers sent the president a letter urging him to extend the pause until at least the end of the year.