Biden administration extends pause on federal student loan repayments through August

The Biden administration is extending a pause on federal student loan repayments through August 31.

The repayment freeze, which has been in place since the beginning of the pandemic, had been scheduled to expire on May 1.

In a statement Wednesday, President Joe Biden acknowledged that the economy is stronger than it was a year ago but that "we are still recovering from the pandemic and the unprecedented economic disruption it caused."

"That additional time will assist borrowers in achieving greater financial security and support the Department of Education's efforts to continue improving student loan programs," he said.

Both Biden and former President Donald Trump have taken actions to extend the pause. Biden had previously moved the payment restart date on three different occasions.

When the Biden administration extended the pause from September 2021 to the end of January 2022, it warned that it would be the final extension. But the President pushed back the date again as Covid-19 cases were on the rise during the winter.