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Within his first day of office, President Joe Biden directed the Department of Education to extend a pause on federal student loan payments through to at least Sept. 30.
Holds on student loan payments began at the beginning of the coronavirus pandemic, but were set to expire at the end of January.
“Too many Americans are struggling to pay for basic necessities and to provide for their families. They should not be forced to choose between paying their student loans and putting food on the table,” according to a statement from the education department.
The pause means that borrowers aren’t required to make payments on their student loans, their loans wouldn’t accrue any interest and all debt collection won’t resume until September.
Students saddled with the burden of the loans may have at least $10,000 of it forgiven under Biden’s proposal.
About 41 million Americans, who owe a collective $1.5 trillion, will continue to benefit from the federal government’s pause of student loan payments.