Has Biden quietly pushed back student loan payments again?

Education Department tells federal student loan servicers not to send repayment notices, according to reports

Joe Biden’s administration has reportedly directed companies that service federal student loans to avoid sending out notices that payments will resume in May, a potential sign that the White House could extend a Covid-19 pandemic freeze on repayments and interest that has given millions of Americans dramatic financial relief over the last two years.

The administration announced a “final” extension of the pause in August, with payments to resume in February. The president extended the pause again in December, with repayments to continue on 2 May.

In the months between announcements, as members of Congress and debt cancellation advocates pressured the White House to indefinitely extend the pause or cancel debt entirely, borrowers received dozens of emails from debt servicers reminding them about their impending repayments.

The US Department of Education has now told federal student loan servicers to not sent such notices, according to reporting from Politico and CNBC, citing sources familiar with the decision.

In a statement to The Independent, an Education Department spokesperson did not confirm reports but said that the agency’s Federal Student Aid office will “continue communicating regularly with servicers about the type and cadence of servicer outreach to borrowers”.

“From Day One, the Biden-Harris Administration has been committed to providing meaningful relief to student loan borrowers including the 41 million borrowers who have saved tens of billions as a result of the extended student loan payment pause,” the statement said. “The Department will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates.”

Since March 2020, with congressional passage of the CARES Act, most federal student loan borrowers have been able to pause their monthly payments and with interest rates set at zero per cent. The pause has been extended five times.

More than 40 million Americans hold roughly $1.75 trillion in student loan debt, most of which is in federal loans.

Debt relief advocates and some progressive legislators argue the president can cancel nearly all of it with the stroke of a pen. Members of Congress have also repeatedly reminded the president that he campaigned on the promise of relieving at least some of that debt, which falls hardest on women and people of colour.