It’s the sixth extension for the program.
Former President Donald Trump extended the freeze twice.
President Joe Biden has done so four times.
Student loan borrowers haven’t been required to make a federal student loan payment since March 2020.
The White House estimates that will give extra breathing room to 41 million Americans who have student loan payments.
“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,” the White House said in a statement.
Is this the last extension?
While the payment freeze could be extended further, the White House statement says people who have student loans should “prepare for a return to payment.”
Sen. Bernie Sanders (D-VT) and Sen. Elizabeth Warren (D-MA) have proposed canceling student loan debt, but it doesn’t have widespread support in Congress.
Biden has said he wants Congress to pass legislation to reduce student loan debt by $10,000 per person, but he likely would not have the votes to move it forward.
Biden has expressed doubt he has the legal authority to do so with an executive order.
Will there be a change in student loan interest rates?
During the student loan payment pause, interest rates on federal student loans have been temporarily set to 0%.
That means there has been no interest accrual for student loan borrowers since March 2020.
Sen. Marco Rubio (R-FL) has proposed setting federal student loan interest rates to 0%, although there is no indication the measure will move forward.