Tag: payments

Department of Education freezes student loan payments through September

At the request of President Joe Biden, the Department of Education on Thursday extended the already nearly yearlong pause on student loan payments through September, allowing the new administration to begin delivering on its campaign promise to prioritize and begin addressing the more than $1.5 trillion debt crisis.

Requesting the department issue a forbearance extension on federal student loans was among 17 executive actions Mr. Biden signed on his first day in office Wednesday evening. Many, including his action on student debt and and an extension on eviction and foreclosure moratoriums, are aimed at relieving Americans from economic burdens worsened

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Biden to continue freeze of payments, ask Congress to erase debt

President-elect Joe Biden’s administration plans to continue a pause on federal student loan payments when he takes office later this month, according to officials helping with the transition.

The nation’s tens of millions of student loan borrowers could continue to abstain from making payments, though it wasn’t immediately clear how long the pause would last.

Biden officials also said Friday they would encourage Congress to pass legislation to erase $10,000 in federal student loan debt per person. That move, however, is likely to draw criticism from activists who have pushed Biden to forgive more debt per person, in some cases

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Student loan borrowers aren’t expected to make payments again until the end of January 2021

Betsy Devos
US Secretary of Education Betsy DeVos speaks as Vice President Mike Pence listens during a White House Coronavirus Task Force press briefing at the US Department of Education July 8, 2020 in Washington, DC. Alex Wong/Getty Images
  • The deadline for student loan forbearance was extended until the end of January 2021, Education Sec. Betsy DeVos announced Friday.

  • More than 40 million student loan borrowers in the US were not expected to make payments on their federal student loans as part of the CARES Act package passed by Congress earlier this year as the pandemic posed financial insecurity for many Americans.

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DeVos suspends student federal loan payments through January

The Trump administration on Friday suspended all federal student loan payments through the end of January and kept interest rates at 0%, extending a moratorium that started early in the pandemic but was set to expire at the end of this month.

By extending payments by one month, the administration is effectively leaving it to the Biden administration or Congress to decide whether to provide longer-term relief to millions of student borrowers. The measure was included in a March relief package and the White House extended it in August, but its fate was in doubt amid stalemate over a new

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