Final Student Loan Payment Freeze Announced

Good news for those with student loan debt, the Department of Education announced that federal student loan payments will remain on pause through the end of January. The payments were set to resume in October. Thanks to the CARES Acts, then from former President Donald Trump, former Education Secretary Betsy DeVos, and President Biden, loan payments, interest accruals, and collections of defaulted federal student loans have all been on hold since the start of the pandemic. According to the Department of Education, this will be the last one.

U.S. Education Secretary Miguel Cardona stated in a news release; “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. 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 the restart and ensure a smooth pathway back to repayment.”

Source: NPR