Biden to Extend Student Loan Repayment 3 More Months

The Biden administration is set to extend the moratorium on repayment of student loans until August 31.

The payments were scheduled to resume May 1 after the moratorium went into effect early in the pandemic when the economy contracted sharply, and many Americans lost their jobs.

Now, some lawmakers say the extensions are needed because of high inflation.

The extension, the fifth, reportedly would affect some 43 million Americans who have a combined student loan debt of more than $1.6 trillion. Some 7 million have defaulted on their loans, meaning they haven’t made a payment in at least 270 days.

Interest on the loans was expected to remain at zero while the moratorium remains in effect.

Some Democratic lawmakers want Biden to cancel up to $50,000 of the debt per debtor, but it is unclear how much support such a move has in Congress.

Some information in this report comes from The Associated Press.

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