The Biden administration is considering whether to extend a pause on federal student loan repayment as the omicron variant of COVID-19 has quickly become the dominant strain in the U.S., according to multiple reports citing Education Department officials.
“Later this week, we will be announcing whether to extend the pause further," a U.S. Department of Education spokesman reportedly told CNBC.
The Trump Administration placed a temporary pause on student loan repayments in March 2020 to help those struggling financially during the pandemic.
The Biden Administration made the announcement in August that one final extension would be made, ending the payment pause after Jan. 31, 2022. The announcement was made to give borrowers enough time to transition smoothly into repayment plans.
Democratic lawmakers and advocates have been pressuring President Joe Biden to extend it again. Senate Majority Leader Chuck Schumer and Democratic senators Elizabeth Warren and Ayanna Pressley sent a letter to Biden on Dec. 8.
“The pause on federal student loan payments, interest, and collections has improved borrowers’ economic security, allowing them to invest in their families, save for emergencies, and pay down other debt. Restarting payments without canceling student debt will undermine these families’ economic progress,” the Democrats wrote.
Schumer, Warren and Pressley also called on Biden to cancel $50,000 of student loan debt for each borrower. Biden promised during his campaign that he would forgive $10,000 of debt but since taking office, the White House has said Biden wants that action to come from Congress.
Federal loans make up more than 90% of outstanding student debt, The Wall Street Journal reported.