Student loan repayments, set to restart May 1, may be delayed again
The White House is considering further extending the freeze on federal student loan payments, a move that could remove a looming deadline for millions of borrowers.
Politico reported the Education Department is instructing companies that manage federal student loans to hold off sending required notices to borrowers about their payments starting. Student debt repayments have been on pause since March 2020 and are set to resume May 1.
The notice did not make clear how long an extension could last.
In all, the change could impact some $1.6 trillion in student loans.
“The Department will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates,” an Education Department spokesperson told Politico. “The Department’s Federal Student Aid office will also continue communicating regularly with servicers about the type and cadence of servicer outreach to borrowers.”
This week, the Department of Education announced it was notifying some 100,000 people who may be eligible to have their student loan debt canceled under the Public Service Loan Forgiveness program. PSLF forgives the remaining balance on federal student loan debt after an eligible public service worker has made 120 monthly payments while working for a qualified employer.