WASHINGTON (Nation Now) – The federal government extends its federal forbearance to student loans, suspends accrued interest and collection activities to the next administration and the next Congress.
Actions related to COVID-19 were due to expire at the end of the year, but Education Secretary Betsy DeVos on Friday announced an extension to January 31, 2021.
Federal borrowers can still make payments on the loan principal because the interest rate is 0%, but no payment will be required until at least February.
“The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been affected,” Secretary DeVos said in a statement. “Overtime also allows Congress to do its job and determine what action it considers necessary and appropriate. Congress, not the executive branch, is responsible for student loan policy. “
Loan payments have been suspended since March 13.
President-elect Joe Biden will take office on January 20. The 117th Congress will begin to meet on January 3.