Department of Education Announces Final Extension of Freeze on Student Loan Payments

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On Friday, the US Department of Education announced that payments on federal student loans would be suspended until the end of January.

Loan payments, interest accrual, and collection of overdue federal student loans have been suspended since the start of the pandemic – first thanks to the CARES Act and then due to enlargement from former President Trump, former Education Secretary Betsy DeVos and President Biden.

Payments were due to resume in October ahead of Friday’s announcement.

The Department of Education has called this latest expansion the definitive one.

“The pause in payments has become a lifeline that has allowed 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 press release. “As our nation’s economy continues to recover from a major pitfall, this final expansion will give students and borrowers the time they need to plan for a restart and ensure a smooth return to repayment.”

IN The Pew Charitable Trusts survey this spring when the moratorium was still due to expire on September 30, two-thirds of respondents said it would be difficult for them to pay once the moratorium was lifted.

Democratic MPs including Elizabeth Warren, Ayanna Pressly and Chuck Schumer, previously called the Biden administration to extend the moratorium until at least March 2022.

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