Biden Extends Pause On Student Loan Payments – By Rebecca Klein (Huff Post) / January 20 2021
The executive order pertaining to federal loans is one of many actions the president planned to take immediately following his inauguration.
- President Joe Biden has issued an executive order extending a pause on federal student loan payments.
- The order, which covers the vast majority of all federal student loans, will allow borrowers to defer payments without penalty and reset interest rates to zero.
President Joe Biden on Wednesday issued an executive order to extend a pause on federal student loan payments through at least the end of September 2021.
A pause on payments first went into effect as the coronavirus pandemic began in March 2020, and was extended in December to expire on Jan. 31. Borrowers were able to defer payments without penalty and reset interest rates to zero.
Biden advisers had made it clear ahead of the inauguration that the incoming president intended to issue such an order immediately. The order covers the vast majority of federal student loans, but excludes some federally guaranteed loans that are held by a private lender.