U.S. President Joe Biden said on Wednesday his administration was extending a pause on student loan repayments through Aug. 31 of this year, giving borrowers additional financial support after two difficult economic years during the pandemic.
The moratorium on repayments has been extended multiple times since it was first put in place in March 2020 due to the COVID-19 pandemic. The current pause had been set to expire on May 1.
"To enable Americans to continue to get back on their feet after two of the hardest years this nation has ever faced, my administration is extending the pause on federal student loan repayments," Biden said in a statement.
Nearly 41 million borrowers have benefited from a freeze on interest accruals and about 27 million borrowers have not had to pay their monthly bills since the forbearance began.
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