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Department of
Education Extends Student Loan Suspension Through January
31, 2021
Secretary of Education Betsy
DeVos announced Friday evening, December 4, that the Trump
Administration will extend the federal student loan
repayment forbearance, including suspension of interest
accrual and collections activity, through Jan. 31, 2021.
Center for Responsible
Lending Federal Advocacy Director and Senior Counsel Ashley
Harrington released the following statement:
“While we are relieved that
payments will not resume in January, a one-month extension
is insufficient. Congress needs to approve a stimulus relief
package that will pause student loan payments for the
duration of the pandemic and help student borrowers plan for
the future. Beyond the uncertainty for borrowers and the
strain on our economy, the federal repayment system is not
structured to withstand starts and stops.
“Real relief is also needed
as short-term payment suspension alone is not enough to help
the millions of struggling borrowers. We must remember that
the nation is still grappling with a surge of coronavirus
cases, mass unemployment, and a fragile economy that is
disproportionately affecting Black Americans and people of
color. The incoming Biden-Harris Administration must keep
its promise to provide substantial, across-the-board debt
cancellation and take the necessary steps to prevent further
financial devastation for vulnerable borrowers and
communities.”
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