The pause in the payment of student loans, interest and fees has been extended until January 31, 2022.
The Ministry of Education made the announcement Friday afternoon and said it would be the last extension.
Before the extension of the moratorium on student loans, imposed to help those struggling during the pandemic, expired on September 30.
The Department believes that this additional time will allow borrowers to plan for renewal of payments and reduce the risk of late payments and defaults after renewed payments.
The Department says it will continue to work towards a smooth return to borrowers for repayment, including by improving its student loan service.
“The pause in payments has become a lifeline, allowing millions of Americans to focus on their families, health and finances instead of student loans during a national emergency,” Education Secretary Miguel Cardona said in a statement. “As our country’s economy continues to recover from a major pitfall, this final extension will give students and borrowers the time they need to plan for a restart and ensure a smooth return to repayment. A top priority for the Department is to support students and borrowers during this transition and ensure that they have the resources they need to access affordable, high-quality higher education. ”
The department says it will begin notifying borrowers of this final renewal in the coming days, and will also release resources and information on how to schedule payments to resume as the end of the pause draws near.
This story is breaking down and will be updated.