Federal student loan payments suspended until 2022
WASHINGTON (NewsNation Now) – The break on federal student loan payments has been extended until January 31, 2022.
The freeze was put in place at the start of the COVID-19 pandemic in 2020, with the federal government fearing millions of debt holders would default on their loans due to lost jobs and the economic recession.
Education officials have repeatedly extended the break under the Biden administration and the administration of former President Trump.
It was recently due to expire on September 30. The Biden administration said this was the last time it would extend the repayment break.
“As our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment,” said US Secretary of Education Miguel Cardona in a press release. announcing the break.
The Biden administration explored plans to write off some student debt with Senators Chuck Schumer and Elizabeth Warren advocating the elimination of at least $ 50,000. Biden said he didn’t think he had the power to write off more than $ 10,000 per person. No plan has been solidified in the White House or Congress to cancel the debt of all Americans
This is a developing story. Check back soon for updates