The freeze will continue until the end of January.
President Biden’s administration will relieve Americans of making their federal student loans payments at least through the end of January of next year. The Education Department announced Friday that this will be the last extension as the government seeks to keep the economic recovery rolling.
The extension continues the suspension of payments for all loans owned by the Department of Education, including a zero percent interest rate and keeping in place a freeze on the collection of defaulted debt. Payments will begin coming due again February 1, 2022. The freeze had been set to expire at the end of September.
“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 Cardona stated. “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 for restart and ensure a smooth pathway back to repayment.”
As the Lord Leads, Pray with Us…
- For discernment for Secretary Cardona as he heads the Education Department.
- For the president and his advisors as efforts are made to stabilize the economy.
- For wisdom for borrowers to make the best use of the funds as they have until the end of January to restart student loan payments.
Sources: Newsmax, Bloomberg News
