Extending the deadline seemed less likely earlier this month when White House Press Secretary Jen Psaki said the administration was considering the impact of omicron, but that borrowers should prepare to resume payments. It’s also a reversal from August, when Biden last extended the deadline and said it was “final”—a word that does not appear in the announcements the White House and the Department of Education issued Wednesday. Borrowers have been allowed to skip payments and interest on federal student loans since March 2020. As the Jan. 31 deadline approached, advocates and progressive politicians called on Biden to extend the reprieve and go a step further by using his executive authority to forgive $50,000 of student loan debt. (On the campaign trail, Biden had promised relief of more than $10,000 per borrower.) The emergence of the fast-spreading omicron variant of COVID-19 and its uncertain effect on the economy added to the pressure. “The pause on federal student loan payments, interest, and collections has improved borrowers’ economic security, allowing them to invest in their families, save for emergencies, and pay down other debt,” Rep. Ayanna Pressley, Sen. Elizabeth Warren, and Senate Majority Leader Chuck Schumer said in a statement. “Extending the pause will help millions of Americans make ends meet, especially as we overcome the Omicron variant.” Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
