A moratorium on federal student loan repayments ends in a month, and the White House is considering whether to extend the moratorium again.
Will I have to start making loan payments? Student loan payments—and interest accruals—were suspended in March 2020 with the adoption of Care Law, the first relief package passed by Congress to help businesses and people recover from the COVID-19 downturn. Both Presidents Donald Trump and Joe Biden have extended the moratorium several times.
- Borrowers were told not to send payment reminders to borrowers, CNBC reported Tuesday, which could signal that the White House is preparing to extend the repayment pause again.
- White House Press Secretary Karin Jean-Pierre said earlier this week, the president plans to make a decision by the end of August.
Why it matters: Biden did student loan forgiveness a key part of his presidential campaign, and some doubt whether he will follow through on that promise. More than 40 million Americans burdened with school debts.
Key quote: “Look, he understands … what this means for families, how hard it can be. I just have nothing more to share.” said Jean-Pierre when asked if Biden is close to a decision on student debt.