President-elect Joe Biden will extend the penalty-free payment pause on federal student loans on “day one” of being in office, according to a transition official.

“We will taking a series of additional steps to help those in need, to get our economy moving ... including alleviating the crushing financial burden of student debt,” Biden adviser David Kamin stated on Friday, adding that “on day one, the president-elect will direct the Department of Education to extend the existing pause on student loan payments and interest for millions of Americans with federal student loans.”

Specific details of the promised action, including how long the extension would be and if all kinds of debt collection would still be suspended, were not immediately clear.

The interest suspension and payment pause on federal student loans, first enacted by President Donald Trump via executive action in March 2020 and later codified by Congress, are set to expire at the end of the month. Congress did not expand the payment pause in the more recent stimulus package but did extend a provision that allows employers to contribute to workers’ student loans through repayment assistance.

Kamin also stated the Biden administration would improve Income Based Repayment programs in addition to “fixing and expanding loan forgiveness programs for those with public service jobs.”

Canceling $10,000 in student loan debt is still on the table, he added, stressing that the incoming administration “supports Congress” in doing so. Biden previously stated that he was reluctant to cancel student loan debt through executive action.

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Aarthi is a reporter for Yahoo Finance. She can be reached at aarthi@yahoofinance.com. Follow her on Twitter @aarthiswami.

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