“The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted,” said Secretary DeVos. “The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate. The Congress, not the Executive Branch, is in charge of student loan policy.”
FSA is now working with federal student loan servicers to notify borrowers that the current relief measures will continue until the end of January. In March 2020, Secretary DeVos instructed employers to halt wage garnishments for borrowers with defaulted federal student loans. That instruction remains in place, and any defaulted borrowers who continue to have their wages garnished will receive refunds.
Upon President Trump’s March 13, 2020, declaration of a national emergency resulting from the COVID-19 pandemic, Secretary DeVos immediately used her authority under the HEROES Act of 2003 to set all federal student loan interest rates to zero and automatically enter borrowers into administrative forbearance, allowing them to defer payments without financial penalty. On Aug. 21, Secretary DeVos fulfilled President Trump’s Aug. 8 Memorandum on emergency federals student loan relief by extending the CARES Act borrower benefits until December 31, 2020.
4 thoughts on “Student loan forbearance period extended through January 31, 2021, in response to COVID-19 national emergency”
Crooked Bankers would know in general how many students are going to default for whatever reason. Number one reason is they can’t afford the payments due to having to live in the real world now. Check the amounts these loans in 2010 on up that were given out. Staggering amounts and the most in history were enrolled in colleges. It was a bonanza in cash giveaway. Should never have been done. The burden is too much owning $100,000 or more. So, they knowingly were banking on garnishment payments. That is wrong aka crooked! But be assured these same bankers just got their teeth kicked in and slapped upside the head on account of King Kong Corona. Their grasping at straws now. FORGIVE half the student’s debt is morally right and fair. Do the right thing.
Where does personal responsibility factor in your analysis? No banker forced these kids to take out huge loans for useless degrees. The economy is still pretty hot and employers still cannot find enough people to work. Shouldn’t be any reason a person couldn’t find a job and pay back their financial obligations.
Exactly, they took out the debt now they need to pay it back. Just like we have to do.
Maybe the “debt” shouldn’t have been made available in the first place? Or the colleges are scammers that overcharge for services? Think.