East Africa News Post

Complete News World

The deadline to pay off federal student loans has been extended to May 2022

The deadline to pay off federal student loans has been extended to May 2022

Washington – Management Joe Biden COVID-19 has again extended the student loan ban that allowed millions of Americans to defer the payment of their debts during epidemics.

Federal student loan payments will be suspended until May 1st. During that period interest rates will be 0% and debt collection efforts will be suspended.

These measures have been in place since the onset of the epidemic, but they expired on January 31st.

This is the second expansion of the administration. “We know that millions of student borrowers are still suffering from the effects of the epidemic, and more time is needed to restart payments,” the president said in a statement.

The policy applies to more than 36 million Americans who have received student loans from the federal government. According to the latest data from the Department of Education, their total debt stands at more than $ 1.37 billion.

One-third of borrowers are default or default, and the average monthly payment is $ 400 per month.

The omigran variant of Govt-19, which has spread across the United States, has given new impetus to the question of whether the ban will be extended.

Officials initially said the January extension would be the last. There is concern that even as the economy improves, borrowers are not ready to repay.

Education Secretary Miguel Cardona said in a statement that the extension would allow for fee plans that respond to students’ financial needs, including an income-based fee plan.

The extension “will provide significant relief to borrowers who continue to face financial difficulties as a result of the epidemic, and will allow our management to assess the impact of Omigron on student borrowers,” Cardona said.

See also  Here are the places in the US with the coldest this week