Biden extends student loan hiatus until May 1, 2022
Today the US Department of Education announced a 90-day extension of the pause on student loan repayments, interest and collections until May 1, 2022.
The extension will allow the Administration to assess the impacts of the Omicron variant on student borrowers and give borrowers more time to plan for resumption of payments and reduce the risk of default and default after restart. . The Ministry will continue its work to ensure a smooth transition for borrowers to repay, including improving the service of student loans.
“From day one of this administration, the ministry has focused on supporting students and borrowers throughout the pandemic and ensuring they have the resources they need to repay successfully,” said US Secretary of Education Miguel Cardona. “This further extension of the repayment break will provide critical relief to borrowers who continue to face financial hardship as a result of the pandemic, and allow our administration to assess Omicron’s impacts on student borrowers.” As we prepare for the return to repayment in May, we will continue to provide tools and support for borrowers to adhere to the repayment plan that is appropriate for their financial situation, such as an income-based repayment plan. Students and borrowers will always be at the center of our work at the Department, and we are committed not only to ensuring a smooth return to repayment, but also to increasing the accountability and customer service of our loan officers as borrowers move forward. prepare for repayment.
The pause on student loan payments will help 41 million borrowers save $ 5 billion per month. Borrowers are encouraged to use the extra time to ensure their contact information is up to date, and to consider enrolling in electronic debit and income-driven repayment plans to facilitate a smooth transition to repayment. More information can be found at StudentAid.gov.
Today’s action is part of a series of measures taken by the Biden-Harris administration to support students and borrowers, make higher education more affordable and improve the service of student loans, including offering nearly $ 13 billion in loan relief targeted to more than 640,000 borrowers. Actions within these include:
- Reorganized the civil service loan forgiveness program in October, which has already provided $ 2.4 billion in loan relief to 38,000 borrowers. As part of this effort, the ministry implemented a limited PSLF waiver to count all prior payments made by student borrowers to the PSLF, regardless of the loan program. Borrowers who work in the public service but have not yet applied to the PSLF must do so by October 31, 2022 and can find more at StudentAid.gov/PSLF.
- Provide $ 7.0 billion in assistance to 401,000 totally and permanently disabled borrowers.
- Approval of $ 1.5 billion of borrower defense claims, including providing full relief to approved claims and approving new types of claims.
- Provide $ 1.26 billion in closed school landfills to 107,000 borrowers who attended the now defunct ITT technical institute.
- Help 30,000 small business owners with student loans seeking help from the Paycheck Protection Program.