WASHINGTON DC – Earlier this month, the Biden administration and the US Department of Education announced they were extending the current pause on federal student loans as well as interest and collections. The extension will last until August 31, 2022.
While many borrowers are still feeling the negative financial impact of the COVID pandemic, the extension aims to ease the burden of student loan repayment for at least another six months. The pause will give recipients time to reassess their budgets to be ready to repay the federal government.
Although federal student loan payments aren’t required during the pause, borrowers can still continue their payments if it’s nothing more than paying loan interest.
“The Department of Education is committed to ensuring student borrowers have a smooth transition to repayment,” said U.S. Secretary of Education Miguel Cardona. “This additional extension will provide borrowers with greater financial security as the economy continues to improve and the country continues to recover from the COVID-19 pandemic. It remains a top priority for the Biden-Harris administration to support students, families and borrowers, especially those disproportionately impacted by the pandemic.During the break, we will continue our preparations to give borrowers a fresh start and ensure that all borrowers have access to repayment plans tailored to their financial situation and needs.
On February 3, 2020, the Trump administration first declared a health emergency in the United States, followed by the declaration of a federal emergency on March 13, 2020, when many federal student loans were suspended by the Department of Education as the country began the COVID lockdown. . Meanwhile, millions of American workers deemed “non-essential” were unable to work.
Now that the American workforce is back with its nose in the grind, the administration and Department of Education will continue to monitor the viability of restarting student loan repayments in September of this year.
For more information, please visit https://studentaid.gov/.
Copyright 2021 Humble Roots, LLC. All rights reserved.