Student Loans Are Set to Be Paused Again, Pushing Payments to September. Biden Likely To Extend The Student Loan
The White House is said to be planning to announce the sixth extension of the pandemic relief program, affecting tens of millions of borrowers.
Millions of federal student loan borrowers have not had to pay their student loans for over two years. But the payment pause is set to end on May 1, which is in just 26 days.
The CARES Act, which Congress enacted in March 2020 in response to the Covid-19 pandemic, is responsible for the long-running pause on most student loan payments
The CARES Act’s student loan relief provisions also suspended interest accrual and halted all collections efforts against borrowers in default on federal student loans.
Earlier Former President Donald Trump first announced the stay on bills for the millions of Americans with education debt in March 2020.
when the coronavirus pandemic brought the U.S. economy to its knees and joblessness soared. Nearly all borrowers eligible for the pause have used it.
The country has emerged from the darkest days of the pandemic, and the unemployment rate has come back down ever since Joe Biden joined.
Yet President Joe Biden administration has expressed reluctance to resume the payments before it makes its decision on student loan forgiveness.