Biden Suspends Student Loan Disbursement Until Jan 31, 2022 And Borrowers Receive $ 110 Billion Student Loan Cancellation



This story is evolving.

President Joe Biden has extended the student loan break until January 31, 2022.

Here’s what you need to know.

Student loans

Making a big win for student loan borrowers, Biden provided student loan exemptions to help student loan borrowers in the wake of the Covid-19 pandemic. Here’s what to expect before January 31, 2022:

  • No federal student loan payments;
  • 0% interest on federal student loans; and
  • no default student loan collection

This is Biden’s second renewal of student loan benefits. It originally extended the January student loan exemption by eight months until September 30, 2021. Earlier, President Donald Trump also extended the student loan exemption twice. The first extension was from September 30, 2020 to December 31, 2020, and the second was from December 31, 2020 to January 31, 2021. Congress approved the initial student loan exemption under the Cares Act – a $ 2.2 trillion stimulus package – in response to the Covid-19 pandemic.


Source link