Federal student loan payments and interest break will continue in 2021
WASHINGTON (NewsNation Now) – The federal government is expanding its forbearance on federal student loans, suspending interest accumulation and halting collection activities in the next administration and 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 loan borrowers can still make payments on the loan principal because there is a 0% interest rate, 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 deems necessary and appropriate. Congress, not the executive branch, is in charge of student loan policy.
Loan repayments have been on hiatus since March 13.
President-elect Joe Biden will be sworn in on January 20. The 117th Congress will begin to meet on January 3.