(Bloomberg) -- The Biden Administration once again extended the pause on student loan payments enacted to help borrowers during the Covid-19 pandemic -- this time through the end of August.
Payments were scheduled to resume in May. But an analysis of recent data from the Federal Reserve suggests that millions of student loan borrowers would have faced significant economic hardship if that deadline had held, President Joe Biden said in a statement Wednesday.
The move aims to help reduce the risk of delinquency and defaults, which can scar a borrower's credit.
“This additional extension will allow borrowers to gain more financial security as the economy continues to improve and as the nation continues to recover from the COVID-19 pandemic,” Secretary of Education Miguel Cardona said in a statement.
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