Student loan repayment pause three more months | Education

Student loan reimbursement pause three extra months | Education

On Wednesday, President Joe Biden mentioned he’ll proceed a pandemic-spurred pause on student loan repayments till May 1.

Loan repayments had been set to restart on Jan. 31, following months when the U.S. Education Department required no funds through the pandemic. Biden instructed the division to increase the moratorium initially positioned by President Donald Trump’s administration.

Trump’s administration froze necessities to repay student loans within the pandemic’s early days in March 2020. Upon taking workplace, Biden prolonged the pause for six months, saying that many debtors within the pandemic-rocked economic system had been nonetheless having problem paying.

As that deadline approached, he prolonged it by means of Jan. 31, 2022, however had been beneath stress in current weeks to push it again additional because the extremely transmissible omicron variant has unfold by means of the United States.

An Education Department information launch mentioned the pause would permit the administration to assessment the omicron variant’s results.

“This additional extension of the repayment pause will provide critical relief to borrowers who continue to face financial hardships as a result of the pandemic and will allow our administration to assess the impacts of omicron on student borrowers,” Education Secretary Miguel Cardona mentioned within the launch.

The extension is an welcomed reduction for about 41 million Americans, together with practically 27 million who haven’t been repaying their loans since early 2020.

“While our jobs recovery is one of the strongest ever — with nearly 6 million jobs added this year, the fewest Americans filing for unemployment in more than 50 years, and overall unemployment at 4.2 percent — we know that millions of student loan borrowers are still coping with the impacts of the pandemic and need some more time before resuming payments,” he mentioned in a White House information launch.

READ:   Personal Finance Definition

“This is an issue Vice President Harris has been closely focused on, and one we both care deeply about.”


Portions of this report first appeared on the web site of the Florida Phoenix, a nonprofit information group devoted to protection of state authorities and politics from Tallahassee. For the entire article, click on right here.