Anyone with student loans will get another month of relief after Education Secretary Betsy DeVos extended the pause on student loan payments through January 31.
According to CNN, borrowers haven’t had to make payments since March, but this was set to expire on December 31. DeVos also extended the pause of interest accrual and the suspension of collections on any defaulted loans.
In an unprecedented move, Trump originally waived interest on student loans back in March as large parts of the economy were shut down in response to the pandemic.
A broader version of student loan relief was included in the $2 trillion economic stimulus package signed into law two weeks later. Under the program, the US government automatically suspended payments and waived interest on federal student loans through September. Trump later extended the expiration date to the end of the year by executive action.
The suspension and interest waiver only apply to federally held loans. That covers roughly 85% of all federal student loans, including Direct federal loans and PLUS loans that allow parents to take out on behalf of their children.
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