The administration is expected to announce the extension on Wednesday, the official said.
Borrowers’ balances have been effectively frozen for more than two years, with no payments required on most federal student loans since March 2020. During this time, interest has stopped accruing and debt collections have stopped accruing. in arrears have been suspended.
Both President Joe Biden and former President Donald Trump have taken steps to extend the pause. Biden had previously moved the payment restart date three different times.
Direct loans and PLUS loans, which are available to graduate students and parents on behalf of their children, are eligible for the benefit. Some federal loans that are guaranteed by the government but not technically in your possession, known as Federal Family Education Loans, or FFELs, did not qualify. In general, they were disbursed before 2010.
The pause in payments is even more significant for those who work in the public sector and may be eligible for federal student loan forgiveness after 10 years. They still receive credit for those 10 years of required payments as if they had continued to make them during the pandemic, as long as they continue to work full-time for qualified employers.
The analysis notes that this relief is largely due to the halt in interest accrual and has benefited doctors and lawyers the most, who tend to borrow large amounts of money for their graduate degrees. The report may underestimate the relief because it doesn’t take into account the added benefit that those seeking PSA forgiveness receive from the payment break.
The pause costs the government an estimated $4 billion a month, according to the Committee for a Responsible Federal Budget.
Some Democrats push for cancellation of student loans
Some key Democratic lawmakers, including Senate Majority Leader Chuck Schumer of New York and Sen. Elizabeth Warren of Massachusetts, have been pushing Biden to broadly write off up to $50,000 of student loan debt per borrower.
Biden made it clear during the presidential campaign that he supported the cancellation of federal student debt. But since he took office, he has resisted pressure to write off the debt on his account with an executive order.
Preparing for payment
The Department of Education has said that borrowers can expect to receive a statement or other notice at least 21 days before their payment is due. Those who have set up automatic payments may need to notify their loan servicing company that they want them to continue.
If federal student loan borrowers can no longer afford their monthly payment once they resume, they may be eligible for an income-driven repayment plan. Under those plans, which are based on income and family size, a monthly payment can be as low as $0 per month.
This story has been updated with additional information.
CNN’s Maegan Vázquez contributed to this report.