President Joe Biden on Wednesday plans to extend the payment pause on federal student loans through at least September 2021.
The executive order will be one of Biden's first acts as president.
The U.S. Department of Education announced in March that borrowers wouldn't have to pay their student loan bills or worry about interest accruing for 60 days. That relief has repeatedly been extended but was set to expire at the end of this month.
The continued pause on payments and accruing interest on federal student loan debt gives further relief to 42 million student loan borrowers.
The vast majority — or around 90% — of borrowers have taken advantage of the government's option to pause their payments during the pandemic, data shows. In a recent Pew survey, 6 in 10 borrowers said it would be difficult for them to start paying their student loan bills again in the coming month.
There are growing calls for Biden to also forgive a portion of the country's $1.7 trillion in outstanding student loan debt, although the president didn't include such a move in his outline for another stimulus package.
Money Report
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