On Friday, the Education Department announced that student loan payments will remain frozen till January! Since the beginning of this Coronavirus pandemic, student loan collections, interest accruals, and loan payments have remained frozen. First, the CARES Act froze the payments, and then Donald Trump, former US President extended the hold. Then, Joe Biden, President of, United States Of America, and Betsy DeVos, former Secretary of Education Department extended this hold.
Democratic Lawmakers Want The Student Loan Freeze To Be Extended Till At Least March!
The student loan payments were about to continue from October. But it got paused again due to the announcement on Friday regarding the extension till 31st January. The Education Department also claimed that this recent extension will be the last one. During this emergency, the student loan payment pause served as a crucial lifeline and support to many Americans. Many Americans could focus on finances, health, and their families instead of these loan payments because of the freeze. Miguel Cardona, Education Secretary of the US stated in his news release that the US economy is looking to get back on its feet.
However, this last extension will provide the American borrowers and students some time to plan out their restart strategy. It will also ensure a much smoother pathway towards repayment. In a Trusts survey that was conducted during this spring, most of the responders talked about how tough it will be to afford payments once this freeze gets lifted.
Previously, Democratic lawmakers like Ayanna Pressley (Rep.), and Elizabeth Warren, Senator along with Chuck Schumer, Majority Leader of the Senate have urged the administration of Biden to extend this freeze on student loan payments. They want the moratorium to be extended at least till March. According to them, this will provide the American borrowers and students the time to make a successful repayment!