What Will Biden Do on Loans?
Meghan Brink
July 22, 2022
The uncertainty has experts worried about borrowers being unprepared for repayment to begin. A source says loan servicers have been told by the Education Department not to send statements to borrowers about the deadline.
The clock is ticking for the Biden administration to let borrowers know whether it plans to extend the pause on federal student loan payments, which is currently set to expire on Aug. 31. If the pause is not extended, 45 million borrowers will have to begin making payments on their federal student loans after a break of over two years.
The department has not yet communicated to borrowers or loan servicers whether it plans to extend the Aug. 31 deadline. However, if history repeats itself, recent actions by the department in communications with student loan servicers could hint at the possibility of an seventh extension to the pause that began in March 2020.
