This is an archived article and the information in the article may be out of date. Please look at the history’s timestamp to see when it was last updated.
WASHINGTON – The Trump administration on Friday suspended all federal student loan payments until the end of January and kept interest rates at 0%, extending a moratorium that began at the start of the pandemic but was due to expire at the end of January. end of this month.
By extending payments by a month, the administration effectively leaves it up to the Biden administration or Congress to decide whether to extend longer-term relief to millions of student borrowers.
“The federal government is not in a good position to have millions upon millions of payments reactivated immediately,” said Robert Kelchen, associate professor of higher education at Seton Hall University. “They’ve never done this before and it would only overwhelm their infrastructure. ”
Education Secretary Betsy DeVos initially suspended federal student loan payments in March. Congress subsequently cemented the measure into legislation and Trump extended it until December, but the impending deadline has fueled fears that millions of borrowers will be forced to resume their payments even as the rate goes. unemployment was skyrocketing.
President-elect Joe Biden did not directly address the moratorium, but called for immediate relief on Tuesday, including “relief on rent and student loans.” He also supported proposals to write off up to $ 10,000 in student debt for all borrowers as part of a future virus relief program.
Kelchen expects the suspension of payments to be extended until 2021, once the Biden administration takes office.
“The likely outcome at this point is on hold until the end of September, if not longer. Some of the more progressive groups are trying to push the Biden administration to write off at least $ 10,000 in student loan debt, or even up to $ 50. $ 000 and it may take some time for payments to resume, even if the student debt is not partially canceled.
Suggest a correction