The Congress, not the Executive Branch, is in charge of student loan policy.". Upon President Trump's March 13, 2020, declaration of a national emergency resulting from the COVID-19 pandemic, Secretary DeVos immediately used her authority under the HEROES Act of 2003 to set all federal student loan interest rates to zero and automatically enter borrowers into administrative forbearance, allowing them to defer payments without financial penalty. I’ve been trying to read and find information regarding if there will even be a possibility for an extension to the current forbearance in student loans. This extension provides forbearance through the end of the calendar year. Complete the … Of course, 2021 plans are mere speculation until we know the outcome of the Georgia runoff elections and Biden assumes office on Inauguration Day. Prepare Your Budget Contact: Press Office, (202) 401-1576, press@ed.gov. 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WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. The federal student loan forbearance just got a month longer. The CARES Act lets you extend your original 180-day mortgage forbearance an additional 180 days, but you must apply in time to be given the extension. In August, President Donald Trump signed a presidential memorandum extending the student loan relief through Dec. 31st. Federal student loan borrowers will not be expected to make payments through January of next year, though they will continue to be able to do so and benefit from the 0% interest rate as they pay down principal. Federally held #studentloans officially suspended until 2021, interest set to … Unless, of course, the President, or Congress, decides Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. On Monday, Congress approved a second coronavirus relief package that includes $600 stimulus checks for many individuals — but no additional student loan forbearance for borrowers. While a one-month extension wasn’t the Christmas miracle many were hoping for, it gives lawmakers time to agree on the next stimulus package or for the new administration to pass loan forgiveness. If Biden's stimulus plans make it through Congress, borrowers may be eligible for $10,000 of forgiveness, and some politicians are advocating for as much as $50,000. Some speculate Biden will forgive at least $10,000 of student loans next year, but you should still plan for loan payments to resume in February. Millions of student loan borrowers might be required to resume federal student loan payments on February 1st. Most recently on Dec. 4, the U.S. Department of Education announced an extension of the federal student loan administrative forbearance … Dec. 31, 2020: Federal student loan forbearance is set to end. For now, the forbearance extension is to begin Oct. 1 and run through the end of the year, barring any legal challenge. Secretary DeVos Extends Student Loan Forbearance Period Through January 31, 2021, in Response to COVID-19 National Emergency. Then, earlier this month, Secretary of Education Betsy DeVos extended the deadline through January. Student loans will remain in forbearance, with no payments due or interest accumulating, through January 2021, which is past President-elect Joe Biden's inauguration date. On Monday, Congress approved a second coronavirus relief package that features $600 stimulus checks for a lot of people — For those enrolled in a qualifying income-based repayment plan, loan rehabilitation agreement or Public Service Loan Forgiveness program, paused payments will still continue to count toward the number of payments you need to meet your requirements. Before getting too optimistic, make a "best case" and "worst case" scenario budget so that you have a plan for your money, no matter what happens. U.S. Secretary of Education Betsy DeVos announced the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through Jan. 31, 2021. WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. But just as important is your best-case scenario budget. This pause was expected to expire Sept. 30, but an extension of the forbearance through Dec. 31 was directed in a memorandum signed by President Donald Trump on Aug. 8. Pushing back your student loan repayment deadline could make your monthly bills more affordable. Student loan forbearance is extended through January 2021 but you should be planning for the future The freeze on student loan payments has been … On August 8 President Trump issued a memo ordering the Secretary of Education to extend the administrative forbearance of federal student loans through … ... it is likely that the forbearance will last until at least mid-2021. FSA is now working with federal student loan servicers to notify borrowers that the current relief measures will continue until the end of January. Education secretary Betsy DeVos announced the extension … On August 8th President Trump extended the student loan administrative forbearance as a response to COVID-19 crisis. Without further federal intervention, payments resume in a few short months. The Deferment Extension Applies to a Majority of Student Loan Types. While it’s possible that this period could be extended again, it’s not guaranteed. "The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted," said Secretary DeVos. ELMIRA, N.Y. (WETM) – Officials have suspended federal student loan payments through January 31st. The reason for relief: COVID-19, of course. Federal loans typically have a grace period of six months after you leave school. Federal student loan borrowers … In addition, loan interest rates will remain at 0%. 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