Biden administration to continue student loan repayment extension through August, reports

The Biden administration will extend a pause on federal student loan repayments through the end of August, according to multiple reports Tuesday.

The payment freeze has been in place since the beginning of the pandemic and was scheduled to expire May 1. The administration is expected to make the official announcement Wednesday.

Since the pause began, interest has stopped being added and collections on defaulted debt have been placed on hold.

President Biden and former President Trump took actions to extend the pause. Administration officials say this will be the final extension. 

The president has been facing pressure from members of his own party to extend the moratorium. Lawmakers are citing inflation as a justification to extend the pause.

One question is whether Biden will ultimately take action to forgive $10,000 in federal student loans per borrower, a measure he supported on the 2020 campaign trail.

Senate Majority Leader Chuck Schumer (D-N.Y.) and fellow 2020 presidential primary candidate Sen. Elizabeth Warren (D-Mass.) have pressed for forgiving $50,000 per person, or canceling student loan debt entirely.