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By: and
Published: Aug 24, 2022 4 min read
Student using their laptop during a university lecture

Federal student loan borrowers just got another big break from the Biden administration.

In addition to cancelling $10,000 to $20,000 in student loan debt for millions of borrowers, President Joe Biden announced Wednesday that the Education Department will extend the freeze on loan payments and waive interest and collections through Dec. 31, 2022. Borrowers on an income-driven repayment plan will also get a break when payments resume (more on that below).

Payments on student loans had previously been scheduled to resume on Sept. 1. Only borrowers with federally held loans — not private borrowers — are eligible for the payment pause. Still, the vast majority of borrowers with student loan debt are affected: Nearly 40 million people have not been required to make payments since the forbearance program began in March 2020.

This is the seventh time the government has extended the forbearance that it enacted in the early days of the coronavirus pandemic. The Education Department will start carrying out the process of loan forgiveness while payments remain paused.