Biden May Extend Pause On Student Loans After Sept 30

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If you have student loans, good news may be on the horizon.

Here’s what you need to know.

Student loans

On Wednesday, there is a new glimmer of hope on Capitol Hill that could delay student loan payments beyond September 30, 2021. reported from Business Insider, during certificate Before the US Senate Appropriations Committee, US Education Secretary Miguel Cardona said there was “ongoing talk” of a possible extension of the pause in student loan payments.

“We continue to talk about if [September 30, 2021 is] best time [to end the pause on student loan payments]- said Cardona. “There are no announcements today, but we continue to have these conversations.”

In response to the Covid-19 pandemic, Congress included extensive student loan relief in the Cares Act, a $ 2.2 trillion stimulus package. This student loan benefit includes:

  • No federal student loan payments;
  • No interest charged on federal student loans; as well as
  • No collection of overdue student loan debt.

President Donald Trump has extended the student loan exemption from October 1, 2020 to January 31, 2021. In January, President Joe Biden extended the student loan exemption for eight months until September 30, 2021. Biden also granted student loan exemption to 1.1 million student loan borrowers with FFELP loans… In the absence of an extension, federal student loan payments will resume from October 1, 2021.


Pause on student loans is unlikely to be extended

At a conference of the Association of Educational Writers last month, Cardona hinted that Biden May Suspend Federal Student Loan Payments After Sept 30, 2021… However, he also said that no decision had been made and suggested that student loan borrowers look forward to resuming the pause in student loan payments on October 1, 2021. “We’re looking at it,” Cardona said in May. “Obviously, we’re going to be guided by what the data tells us and where we are as a country in regards to pandemic recovery. It is possible, but at the moment [the payment pause will end] September 30th “. Cardona’s comments last month are consistent with his comments on Capitol Hill yesterday. However, Cardona told Senators that talk about whether to extend the student loan exemption continues, leaving the door open for a potential extension.


Student Loans: What to Expect

It is possible that the Department of Education may extend the break in student loan payments beyond September 30, 2021. However, this may not be the case, so be prepared to start paying your federal student loan from October 1, 2021. Either way, the Department of Education will do so this summer, make sure that student loan borrowers receive sufficient advance notice of student loan payments. You may also want contact your student loan specialist… Many student loan borrowers are still struggling financially due to the Covid-19 pandemic. Expect written notice from the Department of Education notifying you if student loan payments will resume on October 1 and what to expect in relation to student loan payments. The Department of Education estimates that student loan borrowers will receive Cancellation of over $ 90 billion student loan from March 2020 to 30 September 2021 as a result of a student loan exemption under the Cares Act. Cancellation of this student loan is in addition to $ 3 billion student loans that Biden canceled since becoming president in January.

If student loans are suspended or renewed on October 1st, you will still need a student loan game plan. Here are some smart ways to save money:


Student loans: additional information

Biden Cancels $ 3 Billion Student Loans

Are you eligible to cancel your US $ 200,000 student loan?

Student loan cancellation will face major setback

5 Ways Biden Can Change The Amount Of Student Loan Forgiveness

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