freezes payments through August 31
(FOX NEWS) – The Biden administration is expected to extend a pause once again on federal student loan payments though the proposed timeframe is far shorter than what Democrats had been pushing for, according to reports.
An administration official familiar with the White House’s decision-making told The Associated Press that the freeze on payments will extend through August 31. Payments were scheduled to resume May 1 after being halted since early in the pandemic.
The moratorium has allowed millions of Americans, hard hit by the coronavirus pandemic, to postpone payments. The extension would apply to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government, according to the latest data from the Education Department.
Borrowers will not be asked to make payments until after Aug. 31, and interest rates are expected to remain at 0% during that period.
The extension was first reported Tuesday by Bloomberg. The White House and Education Department did not immediately return requests for comment.
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