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American graduates and their families may be feeling relief Wednesday after the Biden administration extended a pause on student loan payments. Payments will not be required before May 1, and the extension will help around 41 million borrowers. Stephanie Sy reports.

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There was some important news today for college graduates and their families, with the Biden administration extending a pause on student loan payments. Payments will not be required before May 1, and the extension will help around 41 million borrowers.

They were more generous and included more poor families. Estimates show nearly 10 million children are at risk of slipping deeper into poverty as the credit expires.

It won’t disappear entirely, but instead of getting monthly payments of up to $300 per child, Americans will have to file a tax return to claim the funds. The government will also reduce the amount from $3,600 to $2,000 per child annually.

I want to first go into the student loan repayment pause that President Biden announced today. It was supposed to end on January 31. Why this reversal today and how does it change things?

So, there was a lot of outcry from consumer advocates, obviously borrowers, and people in Congress who are saying, listen, people still need this break, even though the administration said the last pause was the absolute last one.

But, as everyone knows, the pandemic and things are just constantly changing.Continue reading→