On December 22, 2021, the White House released this statement indicating that despite “one of the strongest” economic recoveries, federal student loan repayment would be paused an additional 90 days, until May 1, 2022. Student loan repayment was scheduled to resume on January 31, 2022.
“I’m not surprised given the uptick in [COVID-19] cases, with more restrictions and therefore more consequences to the overall economy. The extension helps give the administration more time to determine how to handle ‘forgiveness’ as a broader concept. Hopefully, it will not be confusing since Servicers already advised borrowers payments were resuming,” says Vaishali Rao, Partner, Hinshaw & Culbertson, LLP.
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