July 5, 2021

Will Biden Extend Student Loan Forbearance?


President Biden’s representatives have only suggested the possibility of extending student loan forbearance. President Biden’s student loans payment freeze is currently set to end on September 30, 2021. This means you must begin repaying your student loans on October 1, 2021.

Biden is likely to make a final decision based on the economic data his administration gathers. Student loan borrowers have collectively saved $5 billion a month since the pause on student loan payments. By September 30, borrowers will save $25 billion based on the Education Department’s data.

Although there is no final decision on the matter, the Education Department’s initiatives regarding student loan repayment and student loan advocacy groups present compelling points that make an extension seem likely. Here’s a closer look at what the Education Department and borrower advocates are going through.

Education Department Initiatives

The Education Department announced it would review the existing federal student loan programs to assess repayment plans. The comprehensive task began in May and could take up to two years to complete. The department must review several major federal student loan programs including:

  • Disability discharges
  • Borrower defense to repayment
  • Income-based repayment plans
  • Public service loan forgiveness

Updating these programs’ regulations with the current rulemaking process could take between one and two years before finalizing anything. The slow process may suggest a need to extend the freeze on student loan payments. However, this is only a theory.

Meanwhile, Biden asked the Education Department to analyze his legal authority in canceling student debt without congressional authorization. The White House says they expect official results within weeks of analysis.

Student Loan Borrower Advocates

Several advocacy groups for the protection of student loan borrowers collectively sent the president a statement calling to continue the pause on student loan payments. In summary, they claimed that an abrupt resumption of student loan payments would be difficult for both student loan borrowers and providers.

Many borrowers remain struggling to make ends meet amid the ongoing global pandemic. They may not have the capacity to immediately repay student loans. Meanwhile, student loan providers would face an unprecedented event where millions of borrowers would simultaneously enter repayment status. This possibility would be chaotic.


Biden’s forbearance extension remains unclear. There is no final statement explicitly extending the student loan freeze, but there are no statements dismissing the possibility either. Biden is most likely to decide based on facts and data from student loan borrowers before announcing his decision.

The data closest to the September 30 deadline is most crucial to forming a proper economic decision. Depending on the administration’s findings, Biden may decide to lift the freeze on student loan forbearance. However, advocates advise against an immediate reopening of student loan payments, suggesting an effective transitional period to protect borrowers.

The Department of Education is also reviewing the current repayment plans, the process of which may take up to two years. Data from their comprehensive overhaul may support the need for another student loan forbearance extension.

The likelihood of another extension seems high based on official statements. Regardless, consider your repayment options as soon as possible in the off chance that the September 30 deadline remains in effect.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

Don't worry.
Be Chipper.
Get Started