July 25, 2021

Biden May Extend Student Loan Relief Beyond September 30, But There’s One Major Dilemma

Biden May Extend Student Loan Relief Beyond September 30, But There’s One Major Dilemma


Biden may extend student loan relief beyond September 30, but there’s one major dilemma.

Here’s what you need to know.

Student Loans

There are two parallel paths for your student loans happening right now. The first — student loan cancellation — is about the possibility of wide-scale student loan cancellation happening for at least some student loan borrowers. However, the hope of wide-scale student loan cancellation doesn’t seem to be near-term. With a focus on the infrastructure plan and no news from the Biden administration on potential timing, student loan cancellation appears to be in limbo. The second — and more immediate option — is the possibility of extending student loan relief beyond September 30, 2021 when the following is set to expire:

  • No federal student loan payments;
  • Interest rates on federal student loans set to 0%; and
  • No collection on federal student loans in default.

Absent any extension of this student loan relief, federal student loan payments will be due starting October 1, 2021.




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