Biden-Harris Administration Extends Student Loan Pause Through August 31

 Biden-Harris Administration Extends Student Loan Pause Through August 31

The U.S. Department of Education (Department) announced
an extension of the pause on student loan repayment,
interest, and collections through August 31. While the economy
continues to improve and COVID cases continue to decline,
President Biden has made clear the continuing need to respond
to the pandemic and its economic consequences, as well as to
allow for the responsible phase-down of pandemic relief.

The extension will provide additional time for borrowers
to plan for the resumption of payments, reducing the risk of
delinquency and defaults after restart. During the extension, the
Department will continue to assess the financial impacts of the
pandemic on student loan borrowers and to prepare to transition
borrowers smoothly back into repayment. This includes
allowing all borrowers with paused loans to receive a “fresh
start” on repayment by eliminating the impact of delinquency
and default and allowing them to reenter repayment in good
standing. The Department will also continue to provide loan
relief, including to borrowers who have been defrauded by
their institutions and those eligible for relief through the Public
Service Loan Forgiveness program. FSA will establish new
partnerships to ensure that borrowers working in public service
are automatically credited with progress toward forgiveness,
eliminating paperwork that prevents many borrowers from getting
help. FSA will also continue to transfer loans to servicers
committed to working under new, stronger accountability rules.

“The Department of Education is committed to ensuring
that student loan borrowers have a smooth transition back to
repayment,” said U.S. Secretary of Education Miguel Cardona.

“This additional extension will allow borrowers to gain more
financial security as the economy continues to improve and as
the nation continues to recover from the COVID-19 pandemic.
It remains a top priority for the Biden-Harris Administration
to support students, families, and borrowers – especially those
disproportionately impacted by the pandemic. During the
pause, we will continue our preparations to give borrowers
a fresh start and to ensure that all borrowers have access to
repayment plans that meet their financial situations and needs.”

More information about the payment pause and supports
for borrowers can be found at [StudentAid.gov.]
StudentAid.gov.

This action is one in a series of steps the Biden-Harris
Administration has taken to support students and borrowers,
make an education beyond high school more affordable,
and improve student loan servicing. In just over one year,
the Department has provided over $17 billion in targeted
loan relief to over 700,000 borrowers. Actions within that
include:

Revamping the Public Service Loan Forgiveness program
in October, which has already allowed the Department
to identify more than 100,000 borrowers eligible for $6.4
billion in loan relief. As part of that effort, the Department
implemented a Limited PSLF Waiver to count all prior payments
made by student borrowers toward PSLF, regardless
of the loan program. Borrowers who are working in public
service but have not yet applied for PSLF should do so
before October 31, and can find out more at StudentAid.
gov/PSLF.

Proiding $7.8 billion in relief for more than 400,000
borrowers who have a total and permanent disability.

Approving $2 billion in borrower defense claims to
approximately 107,000 borrowers, including extending
full relief to approved claims and approving new types of
claims.

Providing $1.26 billion in closed school discharges
to 107,000 borrowers who attended the now-defunct ITT
Technical Institute.

Helping 30,000 small business owners with student
loans seeking help from the Paycheck Protection Program.

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