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Tipsheet

Biden Just Extended the Pause on Another Payment Program

AP Photo/Carolyn Kaster

Just days after unconstitutionally extending a moratorium on evictions through the Centers for Disease Control, the White House announced Friday afternoon the Department of Education is extending an emergency pause on student loan payments until next year. 

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"Today, the U.S. Department of Education announced a final extension of the pause on student loan repayment, interest, and collections until January 31, 2022. The Department believes this additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart. The Department will continue its work to transition borrowers smoothly back into repayment, including by improving student loan servicing," DOE released. "The Department will begin notifying borrowers about this final extension in the coming days, and it will release resources and information about how to plan for payment restart as the end of the pause approaches."

Throughout the past week, the White House has been asked by reporters about a potential extension of the pause. Secretary of Education Miguel Cardona hinted at the move during a briefing on Thursday and delivered it 24 hours later.

"The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency," Cardona said about the extension. "As our nation's economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment. It is the Department's priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education."

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The far Left of the Democratic Party is touting the move as a win. 

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