President Joe Biden announced Tuesday that the pause on federal student loan payments will continue through Aug. 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic.

"I know folks were hit hard by this pandemic, and though we've come a long way in the last year, we're still recovering from the economic crisis that caused this continued pause," Biden said in a video posted to social media. "We'll help Americans breathe a little easier as we recover and rebuild from the pandemic."

"If you need support preparing for payments to resume, visit studentaid.gov," Biden added.

Student loan payments were scheduled to resume May 1 after being halted since early in the pandemic. But following calls from Democrats in Congress, the Biden administration will give borrowers additional time to prepare for payments.

The additional time, Biden said in a statement, "will assist borrowers in achieving greater financial security and support the Department of Education’s efforts to continue improving student loan programs."

"As part of this transition, the Department of Education will offer additional flexibilities and support for all borrowers," he added. "I’m asking all student loan borrowers to work with the Department of Education to prepare for a return to repayment, look into Public Service Loan Forgiveness and explore other options to lower their payments."

Vice President Kamala Harris applauded the action on Wednesday, remembering in a written statement her own experiences with student loan debt.

"This is personal for me. I had student loans. Each month, I would sit at the kitchen table, fill out paperwork, and send a check to pay down my balance," she said, going on to detail some of the actions she took as California's attorney general to combat predatory loans from for-profit colleges.

"President Biden and I understand that student loan debt adds stress for borrowers and their families," Harris' statement added. "We have made strong progress as a country in the face of a global pandemic and an economic downturn, but there is still work to do. Today’s announcement will make a meaningful difference as we continue moving forward."

The action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government, according to Department of Education. That includes more than 7 million borrowers who have defaulted on student loans, meaning they are at least 270 days late on payments.

Borrowers will not be asked to make payments until after Aug. 31, and interest rates are expected to remain at 0% during that period.

News of the extension was first reported by Bloomberg on Tuesday.

Democrats in the House and Senate recently urged President Biden to extend the moratorium through the end of the year, citing continued economic upheaval from the COVID-19 pandemic.

Sen. Patty Murray, D-Wash., said more time is needed to help Americans prepare for repayment and to rethink the government’s existing system for repaying student debt.

“It is ruining lives and holding people back,” she said in a statement last month. “Borrowers are struggling with rising costs, struggling to get their feet back under them after public health and economic crises, and struggling with a broken student loan system — and all this is felt especially hard by borrowers of color.”

Murray called on the Biden administration to lift all borrowers out of default to provide a “fresh start” following the pandemic.

The decision is being made amid rising concern that large numbers of Americans would quickly fall behind if payments restarted in May.

"If loan payments were to resume on schedule in May, analysis of recent data from the Federal Reserve suggests that millions of student loan borrowers would face significant economic hardship, and delinquencies and defaults could threaten Americans’ financial stability," Biden said in a statement on Wednesday.

The Trump administration initially gave Americans the option to suspend loan payments in March 2020, and Congress made it automatic soon after. The pause was extended twice by the Trump administration and twice more under Biden.

It remains in question whether Biden will pursue widespread debt forgiveness to reduce the nation’s student debt. Some Democrats in Congress have pressed Biden to use executive action to cancel $50,000 for all student loan borrowers, saying it would jumpstart the economy and help Black Americans who on average face higher levels of student debt.

Last year, Biden asked the Education and Justice departments to review the legality of widespread debt cancellation, but no decision has been announced. Biden previously said he supports canceling up to $10,000, but he argued it should be done through congressional action.

Democrats on Wednesday applauded the president's action but urged him to do more to address student debt.

"Last week, we led nearly 100 Members of Congress in urging the President to extend the pause on student loan payments," Sens. Elizabeth Warren, D-Mass., Majority Leader Chuck Schumer, D-N.Y., Alex Padilla, D-Calif., and Raphael Warnock, D-Ga., and Reps. Ayanna Pressley, D-Mass., Ilhan Omar, D-Minn., Pramila Jayapal, D-Wash., and House Majority Whip James Clyburn, D-S.C., wrote in a joint statement. 

"Today, President Biden heeded our calls and delivered critical relief to millions of Americans," they added. "Since the start of the Biden-Harris Administration, no American has had to pay a dime on their federally-held student debt, and more than 700,000 borrowers have had over $16 billion in student debt cancelled."

"While the extension is welcome, a looming restart of student loan payments in September underscores the importance of swift executive action on meaningful student debt cancellation," the lawmakers continued. "We continue to implore the President to use his clear legal authority to cancel student debt, which will help narrow the racial wealth gap, boost our economic recovery, and demonstrate that this government is fighting for the people.”

When asked if the administration plans to issue another extension beyond August, White House press secretary Jen Psaki on Wednesday said the Department of Education will assess "a range of factors as we get closer to that time," saying: "Of course the economy is in a better state than it was a year ago and we have a strong recovery. We also understand that there are a range of impacts that are still longer lasting because of the pandemic, including the impacts on costs and inflation.”

Biden has "not ruled out" a blanket, executive-level cancelation of nationwide student loan debts, Psaki told reporters, adding that she does not have a further update on the issue. 

"I would note that again, [Biden] would encourage Congress to send him a bill canceling $10,000 in student debt, something that he talked about looking forward to signing," she said.