Education Department Extends Student Loan Payment Freeze Through January

(Excerpts from NPR News)

  • Education Secretary Betsy DeVos announced Friday that pandemic relief for about 41 million federal student loan borrowers will continue until Jan. 31.
  • “The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted,” DeVos said in a statement. “The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate.”
  • Before DeVos’ latest action, the relief was set to expire on Dec. 31, just weeks before President-elect Joe Biden’s Jan. 20 inauguration, making many who study loan repayment nervous.
  • Scott Buchanan, executive director of the Student Loan Servicing Alliance, says, “The decision provides borrowers today a little bit more flexibility. It means that payment won’t have to resume for them. But we still have the question that remains of what happens after Jan. 31.”