WASHINGTON (WTAJ)– The U.S. Department of Education (DOE) has extended the hold on student loan payments until Jan. 31, 2022.
By extending the deadline, the DOE wants to simplify the loan payment process. The department believes that by easing loan borrowers back to loan payments there will be fewer late payments according to a statement.
“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.”
This is just a step in the DOE’s plan to give support to students and loan borrowers, to make higher education more affordable and to improve student loan servicing. Other actions taken by the department according to the statement include:
- Approving $1.5 billion in borrower defense claims, including extending full relief to approved claims and approving new types of claims.
- Reinstating $1.3 billion in loan discharges for 41,000 borrowers who received a total and permanent disability discharge and protecting another 190,000 from potential loan reinstatement.
Loan borrowers will be notified of the extension in the upcoming days along with resources and information on how to plan for when student loan payment returns.
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