Biden extends student loan repayment freeze as bailout drags out in courts

WASHINGTON, D.C. — A source familiar with the plan said the Biden administration is once again extending the pause in federal student loan payments that began in March 2020 to help people who have experienced financial hardship due to the Covid-19 pandemic.

The Department of Education will announce an extension of the suspension for another six months, with the first payments due two months after June 30, unless a Supreme Court decision on the president’s student loan relief program comes sooner.

The administration previously said the latest extension would be the last, with payments scheduled to resume in January.

But the administration also planned for the student loan forgiveness program to begin canceling up to $20,000 in debt for low- and moderate-income borrowers by January. The program has not yet been implemented as it faces several legal challenges.

This story has become current and will be updated.