Biden Administration Announces “Final” Federal Loan Payment Extension
The U.S. Department of Education announced a “final” extension for federal student loan payments on Friday, Aug 6. Loan payments, interest accruals, and collections of defaulted federal student loans will remain on hold through January 31.
"The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency," said U.S. Secretary of Education Miguel Cardona. "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. 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."
Without the latest extension, payments would have resumed in October. This last lifeline will “give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment," said Cardona.