The unprecedented pause on student loan payments has been in place for 30 months and may be extended yet again, leading to questions about the long-term impact of the policy on education funding and on individual colleges and students making financial decisions.
Former President Donald Trump introduced the ban in March 2020 and extended it twice before leaving office. His replacement, President Joe Biden , has extended it four more times and is expected to do so again to move the deadline beyond the fall midterm elections .
The pause has far outlived most other COVID-19-related policies and contradicts the Biden administration’s claims of a strong economy, argues Adam Kissel, Heritage Foundation visiting fellow on higher education reform.
“The Biden administration wants to have it both ways,” he said. “They won’t admit we’re in a recession. They claim the economy is strong, but that would also mean they have no rational basis to keep the loans pause. Are we in a financial emergency or not? You can’t have it both ways.”