Federal student loan repayment suspension extended for an additional 90 days – Consumer Protection

United States: Federal student loan repayment break extended by an additional 90 days

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On Wednesday, December 22, the Biden-Harris administration announced its decision to give federal student loan borrowers an additional 90 days of repayment relief. This pause on federal student loan repayments is expected to lastuntil early May 2022. This is the third time that the administration has extended the repayment moratorium since taking office in January 2021.

Secretary of the Department of Education, Dr. Miguel Cardona, declared that “students and borrowers will always be at the center of our work at the Department, and
[regulators] are committed not only to ensuring a smooth return to repayment, but also to increasing accountability and stronger customer service from our loan officers as borrowers prepare for repayment “during the move discussions. Additionally, in his statement announcing the extension, President Biden urged borrowers to “take full advantage of [federal] resources to help prepare for resumption of payments; examine options for reducing payments through income-based repayment plans; explore the cancellation of public service loans; and make sure you are vaccinated and boosted when you are eligible. “

Sense. Chuck Schumer (D-NY), Elizabeth Warren (D-MA) and Representative Ayanna Pressley (D-MA) – Administration Champions Unilaterally Forgiving Up To $ 50,000 In Federal Student Loan Debt Via Authorities Provided By the Higher Education Act 1965 (PL 89 – 329) – said that if “[they
are] glad the Biden-Harris administration has responded to our call to extend the pause on student loan payments … [the lawmakers will]Continue to call on President Biden to take executive action to write off $ 50,000 in student debt, which will help close the racial wealth gap for borrowers and accelerate our economic recovery. “

In an effort to ease the transition when the break is finally over, Senator Raphael Warnock (D-GA) – with the support of the Sens. Ron Wyden (D-OR), Jack Reed (D-RI), Cory Booker (D -NJ), Sherrod Brown (D-OH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Richard Blumenthal (D-CT), Ben Ray Luján (D-NM), Dianne Feinstein (D -CA), Sheldon Whitehouse (D-RI), Richard Durbin (D-IL), Tammy Duckworth (D-IL) and Tammy Baldwin (D-WI) – recently asked the administration to continue waiving interest on federal student loans throughout the coronavirus pandemic. In one letter, lawmakers said continuing to waive student loan interest “would give federal student loan borrowers a smoother process to resume repayment,” noting that the Education Department found that waiving student loan interest saves borrowers an additional $ 5 billion per month. Senator Warnock asserts that Congress provided the administration with such authority through the passage of the Higher Education Support Opportunities for Students Act 2003 (HEROES) (P. L. 108 – 76).

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