Los Angeles — After a two-year pause on student loans, borrowers should be prepared to restart payments after August.
The Biden administration is expected to announce on Wednesday that the extension will last until Aug. 31.
The 2020 CARES Act suspended payments for eligible student loans in response to the COVID-19 pandemic. During this time, payments were automatically deferred and interest was waived. The act also suspended collection actions and penalties for borrowers with defaulted federal loans. In December, the U.S. Department of Education extended the payment pause.
Democrats have asked President Joe Biden to further extend the student loan payment freeze.
A poll from Data for Progress, a higher education advocacy group, found that voters support extending the pause through the end of the year.