Photo: The South Portico of the White House at Christmas. This Neoclassical, Palladian house is the principle residence of the President of the US
To the relief of millions of borrowers, the U.S. government extended on Friday a moratorium on student loans repayments until early next year.
This latest extension, however, will be the last one.
Starting Jan. 31, borrowers will once again have to make payments toward their federal student loans, theU.S. Department of Educationsaid in a statement. The announcement ends a freeze on federal student loan bills that began in March 2020 at the start of theCOVID-19pandemic.
“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” U.S. Secretary of Education Miguel Cardonasaid. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment.”
“It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high-quality higher education,” he added.
Joe Biden.SAUL LOEB/AFP via Getty
The decision, which the department called a “final extension,” comes after many U.S. lawmakers pressuredPresident Joe Bidento extend the moratorium, which began under the Donald Trump administration.
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Since taking office, Biden has not followed through on hiscampaign promiseto cancel $10,000 of student loans for borrowers.
As of recent estimates, the collective student loan debt in the U.S. amounts to $1.7 trillion, according to theFederal Reserve.
source: people.com
