Student loan payments and the federal government’s interest break should last until 2021


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WASHINGTON (NewsNation Now) – The federal government is extending its federal student loan deferral, pausing interest accrual, and halting debt collection activities until the next government and Congress.

The measures related to COVID-19 should expire at the end of the year, but Education Minister Betsy DeVos announced on Friday an extension until January 31, 2021.

Federal borrowers can continue to make payments on the principal amount of the loan as the interest rate is 0% but no payments are required until at least February.

“The coronavirus pandemic has challenged many students and borrowers, and this temporary suspension of payments will help those affected,” Minister DeVos said in a statement. “The extra time also allows Congress to do its job and determine what action it deems necessary and appropriate. Congress, not the executive, is responsible for student loan policy. “

Loan payments have been paused since March 13th.

President-elect Joe Biden is sworn in on January 20. The 117th Congress begins on January 3rd.


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