Federal officials have requested student loan servicers hold off on sending borrowers notices about upcoming payment dates effective May 2, according to media reports.
03/16/2022 1:30 P.M.
1 minute read
Rumblings about the May 2 end to federal student loan forbearance and discussion of a possible extension are making their way across Capitol Hill, according to media reports.
Last week, White House Chief of Staff Ron Klain said President Joe Biden is “going to look at what we should do on student debt before the pause expires, or he’ll extend the pause,” in an interview with Pod Save America, Politico reports.
“Monthly payments and interest have been suspended on the vast majority of federal student loans since March 2020 when Congress passed the CARES Act,” according to the article. “The Trump administration and then the Biden administration both used executive action to further extend that relief.”
Following the Politico report, news from CNBC showed that the U.S. Department of Education directed federal student loan servicers to hold off on sending out notices about payments resuming in May.
The forbearance, which impacts more than 25 million Americans, has been extended five times throughout the pandemic. Some student loan servicers’ notices to borrowers were slated to be sent out in March.
“The [d]epartment will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates,” an Education Department spokesperson told Politico. “The [d]epartment’s Federal Student Aid office will also continue communicating regularly with servicers about the type and cadence of servicer outreach to borrowers.”
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