In one of his first actions as president, Joe Biden on Wednesday directed the Department of Education to extend the nearly year long pause on student loan payments through September 30, delivering on the new administration’s campaign promise to prioritize and begin addressing the nearly $1.6 trillion debt crisis.
Requesting a forbearance extension on federal student loans was among 17 executive actions Mr. Biden signed on his first day in office. Many, including his action on student debt and and an extension on eviction and foreclosure moratoriums, are aimed at relieving Americans from economic burdens worsened by the coronavirus pandemic.
Since March, all federal student loan payments have been suspended as part of the federal government’s COVID-19 response. An extension of the grace period was included in early drafts of December’s stimulus package, but was cut in final negotiations. Prior to Mr. Biden’s executive action, payments were scheduled to resume at the end of January.