The moratorium on the payment of federal student loans is extended until May 2022

The Moratorium On The Payment Of Federal Student Loans Is Extended Until May 2022

Washington – The Joe Biden administration again extended a student loan moratorium that has allowed millions of Americans to postpone paying off their debts during the COVID-19 pandemic.

Federal student loan payments will remain on hold until May 1. Interest rates will remain at 0% during that period and debt collection efforts will be suspended.

These measures have been in place since the beginning of the pandemic, but they expired on January 31.

RELATED

This is the second extension of the administration. “We know that millions of student loan borrowers are still dealing with the impacts of the pandemic and need more time before resuming payments,” the president said in a statement.

The policy applies to more than 36 million Americans who have student loans from the federal government. Their collective debt amounts to more than $ 1.37 billion, according to the latest data from the Department of Education.

About a third of borrowers are in default or delinquent, while the average monthly payment is $ 400 per month.

The omicron variant of COVID-19 that has swept the United States gave new urgency to the question of whether the moratorium would be extended.

Officials had initially said they expected the January extension to be the last. Even as the economy improves, there are concerns that borrowers are not ready to start making payments again.

Education Secretary Miguel Cardona said in a statement that the extension will allow payment plans that respond to students’ financial needs, including an income-based payment plan.

The extension “will provide critical relief to borrowers who continue to face financial difficulties as a result of the pandemic, and allow our administration to assess the impacts of omicron on student borrowers,” Cardona said.

READ MORE NEWS

YOU MAY ALSO LIKE