Student loan repayment pause extended to 2022, Biden administrator says

The Education Department has extended a pause on student loan repayments, interest and collections, giving borrowers more time to plan amid renewed concerns about COVID-19 due to the delta variant.

“The payment break has been a lifeline that has allowed millions of Americans to focus on their families, health and finances instead of student loans during the national emergency,” the secretary said. ‘Education Miguel Cardona in a press release. “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.”

“The ministry’s priority is to support students and borrowers during this transition and to ensure that they have the resources they need to access affordable, high-quality higher education,” added Cardona.

TWO STUDENT LOAN SERVICES ENDING FEDERAL CONTRACTS, DESERTING 10M BORROWERS – ARE YOU IMPACT?

This extension extends the pause on student loan repayment, interest and collections until January 31, 2022.

The DOE also approved $ 1.5 billion in borrower defense claims, reinstated $ 1.3 billion in loan discharges for 41,000 borrowers who received a total and permanent disability discharge and protected 190,000 borrowers. possible loan reinstatement, and has helped 30,000 small business owners with student loans seeking help through the Paycheck Protection Program.

Republicans swept aside the movement.

“This extension does a disservice to borrowers across the country, and our children will pay the ultimate price for this irresponsible delay,” said Representative Virginia Foxx, R.-NC.

“Secretary Cardona is using the continuing narrative of the pandemic to wield power rather than adopt responsible solutions to help borrowers get back on track,” Foxx added. “I regret that Secretary Cardona has not shown real leadership in working with Congress to responsibly hand over the portfolio for repayment by October 1 of this year. It is nothing less than ‘a breach of duty. “

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