Extension intended to allow the Federal Government more time to assess the impact of the Omicron variant on student borrowers and provide additional time for borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults
COLLEGE LOAN REPAYMENT
The U.S. Department of Education has announced a 90-day extension of the pause on student loan repayment, interest, and collections through May 1, 2022. The extension will give the Government time to assess the impact of the Omicron variant on student borrowers.
It will also provide additional time for borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart.
The pause should help 41 million borrowers save about $5 billion per month. Borrowers are encouraged to use the additional time to ensure their contact information is up to date and to consider enrolling in electronic debit and income-driven repayment plans to support a smooth transition to repayment.