Millions of federal student loan borrowers have not had to pay their student loans for over two years. But the payment pause is set to end on May 1, which is in just 26 days.
There are increasing signs that Biden is likely to extend the student loan payment pause again, although so far, there is nothing official. Here’s where things stand.
The CARES Act, which Congress enacted in March 2020 in response to the Covid-19 pandemic, is responsible for the long-running pause on most student loan payments
The CARES Act’s student loan relief provisions also suspended interest accrual and halted all collections efforts against borrowers in default on federal student loans.
Congress envisioned six months of relief when it passed the CARES Act. But as the Covid-19 pandemic and the associated economic fallout wore on, the relief was extended several times.
President Trump issued several extensions, and President Biden then followed suit. Biden’s most recent extension is set to end in only a few weeks.
Under the CARES Act, the Department of Education is required to communicate with borrowers on at least least six separate occasions about the resumption of repayment
the Department of Education quietly instructed its contracted loan servicers to stop sending out notices to borrowers about repayment resuming.
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Meanwhile, the Department itself — unlike last year when an earlier extension was set to end — has also not been telling borrowers that repayment is imminently set to restart.