U.S. Department of Education Secretary Betsy DeVos recently announced that student loan payment suspension has been extended the Jan. 31. Student loan debt has been suspended for 42 million U.S. borrowers since the global pandemic started in March.
DeVos said in a statement:
“The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted.”
Initially, the suspension was going to end in September, but was extended until the end of December when President Donald Trump signed an executive order in August. Now, that order has been extended for another month so far.
According to CNBC, borrowers were being billed $400 a month on average. Those payments will resume in February 2021, as of the time of publication. In her statement, DeVos also alluded to the latest extension potentially not being the last form of relief for student loan debt.
“The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate.”
According to CNBC, a recent study shows that less than 11% of U.S. borrowers are paying on their student loans as the global pandemic continues. This means that 4.6 million out of 42 million borrowers are making payments, while a recent pew study finds that 58% of borrowers say it’ll be financially hard for them to restart paying down their student loan debt.
CNBC also reports that President-Elect Joe Biden’s plan to forgive student loan debt may have “limited economic benefits” and if he develops this will not help with opposition during the early days of his presidency.
Though, CNBC also suggests potential scenarios involved extending the forbearance period, lowered month-to-month payments and/or student loan forgiveness ranging from $10,000 to $50,000 for borrowers.
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December 08, 2020 at 03:24AM
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Student loan payment suspension extended through January - PennLive
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