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Published: Apr 06, 2022 7 min read
A group of people holding signs thanking President Biden and Vice President Harris for extending the student loan pause once again
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Nearly 40 million student loan borrowers can breathe a sigh of relief.

President Joe Biden announced Wednesday that his administration is extending the student loan moratorium until Aug. 31, against a backdrop of record-setting inflation, whispers of an impending recession and yet another wave of COVID-19 infections.

The student loan moratorium freezes student loan payments and sets the loan interest rate to 0%. Payments were slated to restart May 1, though polls found borrowers weren't ready to resume payments and research suggested many would have been at risk of defaulting on their debts beyond just student loans.

"I know folks were hit hard by the pandemic," Biden said in a video, announcing the extension. "And though we've come a long way in the last year, we're still recovering from the economic crisis it caused."

The news came after weeks of rumors the White House was taking steps toward pushing back the previously announced May start date. Citing anonymous officials, Politico reported Tuesday that the extension was tentatively slated to last until the end of August. Biden and the U.S. Department of Education later confirmed that timeline.