Biden administration halts student loan repayment and keeps interest rate at 0%

Following a request from President Biden, the Education Department said Wednesday, Jan 20, it would extend the suspension of federal student loan payments through Sept. 30.

This is in fulfilment of Biden’s pledge to give borrowers some breathing room as the economy struggles to find its footing.

“Too many Americans are struggling to pay for basic necessities and to provide for their families,” the Education Department said in a statement Wednesday. “They should not be forced to choose between paying their student loans and putting food on the table.”

In the statement, the acting secretary of education added that the agency would extend the pause on federal student loan payments and collections and keep the interest rate at 0 percent.

Biden’s request for the extension was part of a series of actions he took on his first day as president.