Biden administration extends pause on student loan repayment
Good news for federal student loan borrowers: This month, the Biden administration again extended the pause on student debt repayment – this time through Aug. 31.
That means instead of federal student loan payments resuming after May 1, borrowers have four more months of reprieve, with payments set to start Sept. 1. And the new extension includes a “fresh start” program, which erases the default and delinquency status on late payments for millions of borrowers.
Once again, President Joe Biden is showing that he cares and understands the challenges facing working people who struggle to make ends meet while being saddled with the crushing burden of student debt.
While the pause is helpful, especially given the economic and health crises caused by the pandemic, public service workers and working people across the country were struggling to repay mounting debt even before COVID hit. Many working people need more relief.
That’s why AFSCME pushed for changes made by the Biden administration in October to the Public Service Loan Forgiveness (PSLF) program. The changes dramatically increased the number of public service workers who are eligible for student debt relief. More than 100,000 public service workers have already had their debt forgiven.
We encourage you to review the requirements for loan forgiveness programs, including these temporary changes to PSLF. To benefit from the changes to PSLF, some borrowers will need to take steps before Oct. 31, 2022.
If you have questions or concerns about your student loans, you should contact your student loan servicer for free help. Contact information for loan servicers is available on AFSCME’s Student Debt Resource page.
Our union will continue to advocate for increased relief for public service workers and all working families. We will raise our voices together.