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Biden administration extends a student loan payment pause.

admin by admin
August 7, 2021
in Loans
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Bank contends Justice companies filed suit as ‘delay tactic’ when loans came due

The department said that this would be the “final extension” of the pause, which the Trump administration instituted in March 2020 at the outset of the coronavirus pandemic, and that the additional time would allow the agency to transition borrowers back into repayment and reduce the risk of default and delinquency. More than 40 million borrowers have federally held loans, and during the moratorium, they have been interest-free and not subject to repayment or penalties for nonpayment.

“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health and finances instead of student loans during the national emergency,” Education Secretary Miguel A. Cardona said in a statement. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need” to plan to resume payments.

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