Student loan payment pause extended to January 31 – CNNPolitics

 

Washington (CNN)The Biden administration is extending the pause on federal student loan payments one last time until January 31.

The pandemic relief benefit was set to expire on September 30 after an unprecedented 19-month suspension. The freeze was initially put in place by Congress and then extended by both the Trump and Biden administrations.
“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,” said Education Secretary Miguel Cardona in a statement.
Borrower balances have effectively been frozen for more than a year, with no payments required on federal loans since March 2020. During this time, interest has stopped adding up — saving the average borrower about $2,000 over the first year — and collections on defaulted debt have been on hold.

Source: Student loan payment pause extended to January 31 – CNNPolitics