PEORIA, Ill. (WMBD) — White House Press Secretary Jen Psaki on Tuesday confirmed President Biden does not plan to extend the COVID-19 pause on student loan repayments.
In March 2020, Congress suspended federal student loan payments in response to the worsening pandemic. That relief was initially intended to last six months and was extended several times by both former President Trump and President Biden.
Now, those extensions are coming to an end on Jan. 31, 2022, and initial payments will restart on Feb. 1. 2022.
Craig Maynard, chief financial officer at Eureka College, said those with loans should start making repayment plans.
“It’s a totally different budget. What they’re budgeting before, did they keep that budget, probably fluctuated once those payments went away. A lot of it is just being ready for it,” he said.
An estimated 41 million borrowers have benefitted from the COVID-19 student loan repayment pause, according to Psaki.