Biden extends student loan payment freeze

More than 36 million Americans who have student loans that are held by the federal government will have until May 1 to resume paying them off. President Donald Trump initially paused federal student loan repayments in March 2020 because of the COVID-19 pandemic. Both the Trump and Biden administrations extended the freeze. President Joe Biden said that although the economy is improving, many students are still feeling the effects of the pandemic and need more time before resuming payments.

Will the government forgive students’ debt? Earlier this year, Biden asked the Education and Justice departments to study the issue. He has said he supports canceling up to $10,000 in student debt but argued Congress should take the lead on the matter. The loan payment moratorium applies to more than 36 million Americans whose collective debt totals more than $1.37 trillion, according to the latest Education Department data. About a third of borrowers are in default or delinquency.

Dig deeper: Listen to Esther Eaton’s report on student loan forgiveness.