White House announces permanent extension of student loan repayment pause


WASHINGTON, Aug.6 (Reuters) – US President Joe Biden’s administration on Friday announced a final extension of a coronavirus relief break on federal student loan repayments, interest and collections until Jan.31, 2022 .

The extension of the break, which was due to expire on September 30, comes as cases of the Delta variant of the coronavirus continue to rise in the United States.

The Ministry of Education “believes that this additional time and a final end date will allow borrowers to plan for resumption of payments and reduce the risk of default and default after the restart,” according to a statement from the House White.

The department, according to the statement, will begin notifying borrowers of the final extension in the coming days and “will free up resources and information on how to plan for the resumption of payments as the end of the break nears.”

“It is the ministry’s priority to support students and borrowers during this transition and to ensure that they have the resources they need to access affordable, high-quality higher education,” the statement said. quoting Education Secretary Miguel Cardona.

In a separate statement, Biden said the extension of the break is necessary because there is “still a long way to go” for many borrowers despite Friday’s employment report showing the July unemployment rate at a low of 5, 4% in 16 months. Read more

Senate Majority Leader Chuck Schumer and two other Democratic lawmakers welcomed the extension, but said the measure did not go far enough.

“Our broken student loan system continues to exacerbate racial wealth gaps and dampen our entire economy,” he said in a statement with Senator Elizabeth Warren and Representative Ayanna Pressley. “We continue to call on the administration to use its current executive power to write off $ 50,000 in student debt (per borrower).”

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

Our standards: Thomson Reuters Trust Principles.

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