Student loan repayment freeze extended until January, says federal government
STATEN ISLAND, NY – A freeze on student loan payments has been extended until Jan.31, 2022, the U.S. Department of Education said on Friday.
Prior to Friday’s announcement, payments were expected to resume in October 2021.
The department said the extra time and a definitive end date will allow borrowers to plan for resuming payments and reduce the risk of default and default. It will also continue its work to bring borrowers back smoothly to repayment, including improving student loan service.
âThe payment break has been a lifeline that has allowed millions of Americans to focus on their families, health and finances instead of student loans during the national emergency,â the US secretary told Education Miguel Cardona in a press release. âAs our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment. The ministry’s priority is to support students and borrowers during this transition and to ensure that they have the resources they need to access affordable, high-quality higher education.
The ministry will begin advising borrowers of this latest extension in the coming days. It will post resources and information on how to plan to restart reimbursement as the break nears.
In a joint statement, Sen. Chuck Schumer (D-New York), Senator Elizabeth Warren (D-Mass.) And Rep. Ayanna Pressley (D-Mass.) Said they were pleased that the payment break from the student loan has been extended “bringing tremendous relief to millions of borrowers facing a catastrophic financial cliff,” but it did not go far enough.
“Our broken student loan system continues to exacerbate racial wealth gaps and dampen our entire economy,” the statement said. âWe continue to call on the administration to use its current executive power to write off $ 50,000 in student debt. Canceling student debt is one of the most important steps President Biden can take right now to build a fairer economy and tackle racial inequality. We look forward to hearing the administration’s next steps in addressing the student debt crisis.
The extension is part of a series of measures taken by the ministry to support students and borrowers, make higher education more affordable and improve the service of student loans.
- Approval of $ 1.5 billion in borrower defense claims, including providing full relief to approved claims and approving new types of claims.
- Reinstate $ 1.3 billion in loan cancellations for 41,000 borrowers who obtained a total and permanent disability release and protect another 190,000 from eventual loan reinstatement.
- Help 30,000 small business owners with student loans seeking help from the Paycheck Protection Program.
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