The US President Joe Biden's administration announced that it would continue a moratorium on federal student loan payments through Jan. 31, extending emergency relief for millions of borrowers that had been set to expire next month."The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency," Education Secretary Miguel Cardona said.

The Department believes this additional time and definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart," the statement said. Student loan payments in the country have been paused since Congress passed the CARES Act last year but were due to end in September.

During the pause, borrowers do not need to make payments and interest will not accrue on their remaining balance. Collecting on the country's USD1.6 trillion student loan bills is a daunting task even during normal times, local analysts said.  Several Democratic leaders in Congress had pressed the Biden administration over the summer to continue the student loan pause, saying that the fast-approaching expiration was ill-timed considering that millions were still suffering financial hardship from the pandemic.

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