The student loan payment break was extended until January 31st


Borrowers have not had to pay since March, but the exemption expired on 31 December. DeVos has also extended the suspension of interest accrual as well as the suspension of the recovery of overdue loans.

In an unprecedented move, President Donald Trump originally waived interest on student loans in March as much of the economy came to a halt in response to the coronavirus epidemic.

A broader version of student loan relief was included in the $ 2 trillion economic stimulus package signed two weeks later. Under the program, the U.S. government automatically suspended payments until September and waived interest on federal student loans. Trump later set an expiration date at the end of the year with an implementing measure.

Congress has not yet approved more epidemic subsidies, despite another comprehensive stimulus package being negotiated for months, but lawmakers are moving closer to an agreement. The bipartisan proposal presented earlier this week included a provision to continue the suspension of student loan payments. But the negotiators still have a lot of work to do and the deadline is approaching soon. It is still possible for Congress to extend the exemption until January 31st. President-elect Joe Biden may also postpone the deadline by means of an implementing measure.

The suspension and interest exemption only apply to federally held loans. It covers about 85% of all federal student loans, including loans called direct federal loans and PLUS loans, which parents can take out on behalf of their children.

It excludes some federal loans that are guaranteed by the government but not technically maintained. These were usually paid before 2010.

Although borrowers will not have to pay until January 31, they will still be able to do so and can enjoy the 0% interest rate.

Those included in the public service loan waiver payment plan will continue to credit the waiver program as if they had continued to pay as long as they continue to work full-time for qualified employers.