WASHINGTON (AP) — The Biden administration plans to freeze federal student loan payments through Aug. 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic, according to an administration official familiar with the White House’s decision-making.
Highlights
- The Biden administration plans to freeze federal student loan payments through Aug.
- 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic.
- The action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government.
- The decision was confirmed by an administration official familiar with the White House’s decision-making.
- Interest rates are expected to remain at 0% during that period.
- Decision is being made amid rising concern that large numbers of Americans would quickly fall behind if payments restarted in May.