WTF Is Going on With Federal Student Loan Assistance?
With the federal student loan forbearance period expiring in October, most borrowers will have to start paying off their student loans for the first time since March 2020—if that deadline stands. But will the moratorium be extended again? Here’s a look at the latest on student loan forgiveness.
Will the student loan forbearance be extended past October?
The chances for a forbearance extension has recently improved, although there’s no guarantee it will happen. As Politico reports, officials from the U.S. Department of Education are recommending that the White House extend the moratorium through January 2022, although this stance has not been publicly stated yet.
And last week, Democratic Sens. Elizabeth Warren and Edward J. Markey sent a letter to President Biden urging for an extension of the moratorium to at least March 31, 2022. The letter points to ongoing servicer issues—as servicers say they’re still understaffed—along with the ongoing financial hardship for borrowers, citing a June survey in which 90% of respondents said they were not ready to resume loan payments in October.
There’s also the recently announced departure of …
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