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White House says it still plans to resume student loan payments in February

Jen Psaki press secretary
Posted at 1:02 PM, Dec 13, 2021
and last updated 2021-12-13 15:16:35-05

The White House said Monday that it still has no plans to extend a pause on student loan payments that has been in effect since the start of the pandemic.

When asked Monday if the Biden Administration has any plans to extend the moratorium on loan payments, press secretary Jen Psaki said that a "smooth transition back into repayment is a high priority for the administration."

"The Department of Education is already communicating with borrowers to help them return to repayment on Feb. 1 and has secured contract extensions with loan servicers. So, we are preparing for a range of steps here," Psaki said.

She added that the White House is monitoring the impact that the omicron variant could have on the economy and added the administration would release more information on their plans in the weeks ahead.

In August, the White House extended the pause on student loan payments through January 2022. At the time, the Biden Administration noted that it would be the final time it would extend the moratorium.

The Trump Administration put a moratorium on student loan payments at the start of the pandemic. Since then, borrowers have not been required to make monthly payments on their loans.

According to Scripps political reporter Joe St. George, an estimated $110 billion is believed to be in the hands of Americans and not the federal government as a result of the no-payment pandemic policy.