Federal student loan payments paused until 2022

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WASHINGTON (NewsNation Now) – The hiatus in federal student loan payments has been extended to January 31, 2022.

The freezing was introduced at the start of the COVID-19 pandemic in 2020 as the federal government feared millions of debtors would not get their loans due to job losses and the declining economy.

Education Department officials have extended the hiatus several times under the Biden administration and the administration of former President Trump.

It should last expire on September 30th. The Biden government said this will be the last time it will extend the repayment hiatus.

“As our country’s economy continues to recover from a deep dump, this final extension will give students and borrowers the time they need to plan the restart and ensure a smooth path back to repayment,” said US Secretary of Education Miguel Cardona announce the break in a press release.

The Biden administration has been investigating plans to cancel some student debt, with Senators Chuck Schumer and Elizabeth Warren campaigning to get rid of at least $ 50,000. Biden said he doesn’t think he has authority to cancel more than $ 10,000 per person. There were no plans in the White House or in Congress to cancel the debt of all Americans

This is a developing story. Check back soon for updates

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