As of now, student loan payments will resume August 31. However, this isn't the first time the deadline has been extended. The COVID-19 pandemic has continued to cause significant financial challenges for many people across the US. The government met the initial wave of the pandemic in March 2020 with a robust aid package that included a pause on student loan repayment.  As the pandemic's spread gradually begins to slow, its financial effects are still reverberating throughout the US economy. This extension is meant to give borrowers time to get back on their feet financially and work loan payments back into their budgets.  "Even for those who were prepared, thousands of people lost their jobs, took hits on their portfolios and broke into their reserves, and are trying to gain their footing in this new normal," says Dawn Dahlby, the founder and president of the advisory firm Relevé Financial Group. "The pause is the government's way of lending a hand and putting more cash back in the pockets of those who need it most."