US extends suspension of student loan repayments till May 2022

*US President Joe Biden says he is extending the deadline due to the looming threat of the COVID-19 pandemic, which has intensified in recent weeks due to the emergence of the Omicron variant

Alexander Davis | ConsumerConnect

Consumers who are still repaying their college loans received some welcome news  Wednesday, December 22, 2021, in the United States (US).

ConsumerConnect reports US President Joe Biden announced in a statement Wednesday that his administration would be extending a pause on student loan repayments until May 1 next year.

US President Joe Biden

The government’s latest decision is said to have added 90 days to the previous deadline of February 1, 2022 given to the affected consumers.

President Biden noted that he is extending the deadline due to the looming threat of the COVID-19 pandemic, which has intensified in recent weeks due to the emergence of the Omicron variant.

The President stated: “We know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments.”

Meanwhile, borrowers have been urged to plan for repayments to resume in the American country.

Biden also cited improvements to the economy and jobs market in his announcement, stating that the U.S. has added 6 million jobs this year and recorded the fewest Americans filing for unemployment in over 50 years.

However, the Biden administration said that a rising number of COVID-19 cases could threaten the economy and cause that progress to reverse.

Student loan borrowers who are affected by the extension of the student loan repayment pause should do all they can to prepare for their payments to resume next year, said the President.

The statement also said: “As we are taking this action, I’m asking all student loan borrowers to do their part as well: take full advantage of the Department of Education’s resources to help you prepare for payments to resume; look at options to lower your payments through income-based repayment plans; explore public service loan forgiveness; and make sure you are vaccinated and boosted when eligible.”