White House expected to extend pause on student loan repayment through August 31

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The pause in student loan repayments had been slated to end May 1.

The Biden administration is expected to announce an extension of the federal student loan payment pause Wednesday, according to an administration official familiar with the White House's decision-making. The move would delay the repayment of student loans until August 31. The payment pause was previouslyRoughly 37 million student loan borrowers have been in limbo for several months over whether the payment pause would be extended.

Earlier this month, White House Chief of Staff Ron Klain said the decision on whether there could be forgive student debt through executive action was going to be made before the payments resume or the president would extend the pause. The Committee for a Responsible Federal Budget, which had called for the student loan payments to resume, estimated extending the pause would cost an additional $50 billion per year.

"Income-driven repayment plans are effectively loan forgiveness plans," Kantrowitz said."They forgive the remaining debt after a number of years in repayment."

 

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