White House announces final extension of student loan repayment pause

White House publicizes last extension of student loan reimbursement pause

WASHINGTON, Aug 6 (Reuters) – U.S. President Joe Biden’s administration on Friday introduced a last extension of a coronavirus reduction pause on federal student loan repayments, curiosity and collections till Jan. 31, 2022.

The extension of the pause, which had been on account of expire on Sept. 30, comes as circumstances of the Delta variant of the coronavirus proceed to surge across the United States.

The Department of Education “believes this additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart,” a White House assertion stated.

The division, the assertion stated, will start notifying debtors in regards to the last extension within the coming days and “release resources and information about how to plan for payment restart as the end of the pause approaches.”

“It is the department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high-quality higher education,” the assertion quoted Education Secretary Miguel Cardona as saying.

In a separate assertion, Biden stated the pause extension is required as a result of the “road will still be long” for a lot of debtors regardless of Friday’s jobs report exhibiting July’s unemployment fee at a 16-month low of 5.4 %. learn extra

Senate Majority Leader Chuck Schumer and two fellow Democratic lawmakers hailed the extension, however stated the measure didn’t go far sufficient.

“Our broken student loan system continues to exacerbate racial wealth gaps and hold back our entire economy,” he stated in an announcement with Senator Elizabeth Warren and Representative Ayanna Pressley. “We continue to call on the administration to use its existing executive authority to cancel $50,000 of student debt (per borrower).”

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Reporting by Jonathan Landay, Timothy Ahman and Mohammad Zargham; Editing by Leslie Adler, Sonya Hepinstall and Sandra Maler

Our Standards: The Thomson Reuters Trust Principles.

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