Education Secretary Betsy DeVos announced Friday that the federal student loan repayment forbearance … [+]
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Education Secretary Betsy DeVos announced Friday that the federal student loan repayment forbearance would be extended through January 31, 2021.
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Previously, payments on student loans had been suspended through December 31, 2020 after President Trump used executive authority to extend the suspension from the CARES Act that expired in September. With coronavirus cases rising and the economy still in a fragile state, many were worried about payments resuming in January.
The announcement from Secretary DeVos says the extension will still suspend interest accrual and payments made will go directly towards the loan principal. Additionally, the press release specifies that the time will count towards required payments for forgiveness under income-driven repayment plans and the Public Service Loan Forgiveness program.
This new extension goes just beyond when President Trump will leave office and President-elect Biden will be sworn into office. The door is still open for Biden to extend the student loan repayment suspension beyond that date.
At the same time, Congress is currently negotiating on another coronavirus relief package which could also extend the forbearance period beyond January.
This story is developing and will be updated as more is known.
