FOR IMMEDIATE RELEASE
Cody Hounanian
cody@studentdebtcrisis.org | (646) 820-8037
Biden Administration Extends Federal Student Loan Payment Pause, Advocates Call for Pause to Continue Until Debt is Canceled
Today, the Biden Administration announced that it is extending the pause on federal student loan payments until June 30, 2023 or until after legal challenges to President Biden’s student debt cancellation plan are settled. We welcome this news as millions of borrowers, who were depending on the President’s student debt cancellation plan, are facing uncertainty due to recent legal challenges. Without debt cancellation, borrowers are left shouldering the persistent harm caused by the COVID-19 pandemic, skyrocketing inflation, and an unclear financial future. Extending the payment pause is the most meaningful relief available at this time.
Keeping payments turned off until student debt is canceled is critical for working families across the country. A recent Student Debt Crisis Center survey of over 31,000 borrowers found that 83% currently depend on the financial relief provided by the payment pause. Further, 62% of borrowers say they have not financially recovered from the pandemic. That’s why borrowers and advocates are urging the President to keep payments off until student debt is canceled. In just the past week, over 58,489 people signed the petition and 28,609 people sent letters to the White House urging the President to take such action.
"Restarting student loan payments is simply not affordable for millions of Americans. Federal student loan payments must not resume during this critical time – and the pause should continue until the President’s student debt cancellation plan is secured,” said Natalia Abrams, Student Debt Crisis Center President. “We applaud the President for doing the right thing. Too many borrowers, parents, and students have yet to recover from the financial harm caused by the pandemic and the possibility of a winter surge in COVID-19 cases is proof that this crisis is not over. Student debt cancellation is essential to helping borrowers recover from the pandemic, but it remains stuck in the courts.”