On Friday, the Biden administration announced that the moratorium to pay the student debt has been extended till the thirty-first of January 2022.

According to the Associated Press, the moratorium extension will continue the existing pause on debt collection for several more months and the interest rate in the period will continue to remain zero.

The moratorium is in place since the early days of the Pandemic. Biden extended the moratorium till Sept 2020 when he first took the office. The Biden administration has also noted this will be the final extension on this moratorium and it will not be extended further.

" The administration is extending the pause on federal student loan repayments one final time until January 31, 2022. This will give the Department of Education and borrowers more time and more certainty as they prepare to restart student loan payments. It will also ensure a smoother transition that minimizes loan defaults and delinquencies that hurt families and undermine our economic recovery," President Biden said in a statement

Senate Majority Leader Chuck Schumer (D-N.Y.), Sen. Elizabeth Warren (D-Mass.), and Rep. Ayanna Pressley (D-Mass.) issued a joint statement appreciating the administration move.

"While this temporary relief is welcome, it doesn't go far enough. Our broken student loan system continues to exacerbate racial wealth gaps and hold back our entire economy. We continue to call on the administration to use its existing executive authority to cancel $50,000 of student debt," the joint statement said.