On Friday, the Biden administration announced that it would extend the break in federal student loan payments until January 31, 2022.
The extension of the break on loan repayments and interest is automatic but only applies to loans held by the federal government, CNN reported. About 85% of all federal student loans fall into this category, according to CNN Politics, including federal direct loans and PLUS loans that parents have taken out on behalf of their children.
Data Education Department shows that just over 6,000 Syracuse University students, or about 39% of all undergraduates as of fall 2019, received federal loans during the 2019-2020 school year. It is not known how many of these students had loans held by the federal government and would benefit from the break.
The two Asset and Biden administrations have already extended the pandemic relief allowance, which Congress initiated by adopting the CARES law in March 2020. The last freeze was due to end on September 30.
No payments have been required on federal loans since March 2020, with interest and collections on overdue debts also suspended.
Despite the break, senators like Chuck Schumer, D-NY and Elizabeth Warren, D-MA, called on Biden to do more, like implementing a loan order forgiveness, although such an ordinance has not yet been instituted.
Posted on August 6, 2021 at 8:30 p.m.