A White House decision on timing student loan repayments in the the United States of America will have to be paid again does not seem imminent.
They were first suspended in March 2020 due to the coronavirus pandemic and since that decision was made they have been rescheduled six times by the Asset and Biden administrative.
In theory, they should resume in September. Some experts believe the government will continue the moratorium beyond September.
Will student loans resume in September?
“The Department of Education will continue to assess the impacts of the COVID-19 pandemic and the economy on student borrowers,” a spokesperson told CNN on July 25.
The representative added that the DoE will “communicate directly with borrowers regarding the end of the payment pause when a decision is made.”
It was reported by Bloomberg that President Biden is considering extending the pause on student loan repayments until the end of 2022, or even until the summer of 2023.
The moratorium halted payments and interest for 35 million Americans and suspended collection efforts against the 7 million borrowers currently in default. Nearly $200 billion in loans have been deferred in all, according to an analysis by the Federal Reserve Bank of New York.
Why are student loans suspended?
President donald trump first declared the pause on student loans in March 2020 and extended it twice until January 2021. Biden has extended the break four more times since taking office.
The Biden The administration initially warned that the extension to January 2022 would be the last, but with the omicron variant of COVID-19 sweeping the United States last year, Biden decided to extend the moratorium until May 1, 2022.
A letter was sent by a series of senior Democrats on March 31 calling on the White House to extend the moratorium.
“Restarting repayment will financially destabilize many borrowers and their families, and cause hardship for many who cannot afford to repay,” the letter said.