Biden extends pause on student loan repayments through Aug. 31

WASHINGTON (Reuters) – U.S. President Joe Biden mentioned on Wednesday his administration was extending a pause on pupil mortgage repayments by Aug. 31 of this 12 months, giving debtors extra monetary assist after two tough financial years throughout the pandemic.

The moratorium on repayments has been prolonged a number of occasions because it was first put in place in March 2020 as a result of COVID-19 pandemic. The present pause had been set to run out on Could 1.

“To allow People to proceed to get again on their ft after two of the toughest years this nation has ever confronted, my administration is extending the pause on federal pupil mortgage repayments,” Biden mentioned in a press release.

Practically 41 million debtors have benefited from a freeze on curiosity accruals and about 27 million debtors haven’t needed to pay their month-to-month payments for the reason that forbearance started.

(Reporting by Chris Gallagher; Modifying by Tim Ahmann)