Freeze on Student Loan Payments Could be Extended Again: Report
The freeze on student loan payments could be extended again, according to a report. CNBC reported the U.S. Department of Education has directed student loan companies not to send out notices about payments, citing two…
The freeze on student loan payments could be extended again, according to a report.
CNBC reported the U.S. Department of Education has directed student loan companies not to send out notices about payments, citing two people familiar with the matter.
The outlet noted the report is a sign that the Biden administration is considering extending the freeze on payments. Still, it is unclear how much more time borrowers will have, as CNBC reported.
A Department of Education spokesperson told The Hill the department “will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates.”
The spokesperson added, “The Department’s Federal Student Aid office will also continue communicating regularly with servicers about the type and cadence of servicer outreach to borrowers.”
Additionally, White House chief of staff Ron Klain said during an episode of “Pod Save America” the president “is going to look at what we should do on student debt before the pause expires, or he’ll extend the pause.”
Politico noted student loan payments have been suspended since former President Donald Trump signed the CARES Act in March 2020.
The top Republican on the House Committee on Education and Labor, Rep. Virginia Foxx (R-NC), said last month Biden’s extension on student loan payments was a mistake.
“President Biden’s latest extension is a troubling trend toward blanket student loan forgiveness, which would be a massive mistake, with major consequences for borrowers and taxpayers,” Foxx said.
She added, “The Biden administration owes Congress and the American people a plan that will address challenges facing student loan servicing companies and borrower confusion, and provide a clear timeline for when student loan payments will resume. The Biden administration has had a year to come up with a plan, it is time to stop stalling.”
Biden did not mention student loans during his State of the Union address earlier this month.