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Student loan payments: When will the moratorium end?

Lto a White House decision on when the payments should be made again. student loan payments in the United States of America does not seem imminent.

They were first stopped in March 2020 due to the coronavirus pandemic, and since that decision was made, the Trump and Biden administrations have stopped them. rescheduled six times.

In theory, should resume in September. Some experts believe that the government will continue the moratorium beyond September.

Will student loans resume in September?

“The Department of Education will continue to assess the impacts of the COVID-19 pandemic and the economy on student loan borrowers,” a spokesperson told CNN on July 25.

The representative added that the DoE “communicate directly with borrowers about the end of the pay break when a decision is made.”

Bloomberg reported that the president Biden is thinking of extending the pause in student loan payments until the end of 2022 or even until the summer of 2023.

The moratorium halted payments and interest for 35 million Americans and suspended collection efforts against the 7 million borrowers currently in default. In all, nearly $200 billion in loans have been deferred, according to an analysis by the Federal Reserve Bank of New York.

Why are student loans on hold?

The president donald trump he first enacted the student loan pause in March 2020 and extended it twice through January 2021. Biden has extended the pause four more times since taking office.

The Biden administration initially warned that the extension to January 2022 would be the last, but with the omicron variant of COVID-19 sweeping the US last year, Biden decided continue with the moratorium until May 1, 2022.

A number of leading Democrats sent a letter on March 31 asking the White House to extend the moratorium.

“Restarting payment will financially destabilize many borrowers and their families, and cause difficulties for many who cannot make the payment“, the letter said.

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