STATEN ISLAND, NY – Freeze on student loan payments extended until January 31, 2022. This was announced on Friday by the US Department of Education.
This is the final extension of the pause in the payment of student loans, interest and fees. This means that student loan payments will resume on February 1, 2022.
Prior to Friday’s announcement, payments were due to resume in October 2021.
The department said this additional time and a final end date will allow borrowers to schedule renewal of payments and reduce the risk of delinquency and default. It will also continue to work to smoothly return borrowers to maturity, including by improving student loan service.
“The pause in payments was a lifeline that 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 statement. statement… “As our country’s economy continues to recover from a severe pit, this final expansion will give students and borrowers the time they need to plan for a restart and ensure a smooth return to repayment. The Department’s top priority is to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high-quality higher education. ”
In the coming days, the department will begin notifying borrowers of the final renewal. It will free up resources and information on how to schedule a repayment restart as the end of the pause approaches.
IN joint statement, Senator Chuck Schumer (New York Democrat), Senator Elizabeth Warren (Massachusetts Democrat) and Rep. Ayanna Pressley (Massachusetts Democrat) expressed satisfaction that the pause in student loan payments has been extended “providing tremendous relief to millions of borrowers facing a catastrophic financial crisis ”, but this is not enough.
“Our dysfunctional student loan system continues to widen the racial wealth gap and constrain our entire economy,” the statement said. “We continue to urge the administration to use its executive powers to write off $ 50,000 in student debt. Canceling student debt is one of the most important actions President Biden can take right now to build a fairer economy and eliminate racial inequality. We look forward to further steps by the administration to address the student debt crisis. ”
The renewal is one of the steps taken by the department to support students and borrowers, increase access to higher education, and improve student loan service.
- Approving $ 1.5 billion borrower protection claims, including providing full reimbursement to approved claims and approving new claim types.
- Restoring payments on a $ 1.3 billion loan for 41,000 borrowers with full and permanent disabilities, and protecting another 190,000 from potential loan recovery.
- Helping 30,000 small business owners get student loans who need help with the payroll protection program.