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US Secretary of Education Betsy DeVos attends the “Safely Returning American Children to School” event in the States Room of the White House in Washington, DC on August 12, 2020.
NICHOLAS KAMM / AFP via Getty Images
U.S. Department of Education Secretary Betsy DeVos announced Friday that the payment suspension and interest waiver for student loan borrowers would be extended until the end of January.
The department said it would also halt federal student loan collection activity, including wage garnishment and Social Security checks, until next year.
The 42 million Americans on federal student loans were offered a break from their monthly bills in March, as it became clear the coronavirus pandemic would increase unemployment. That relief was due to expire in September, but President Donald Trump signed an executive order in August that extended the interest-free reprieve until the end of December.
Now federal student loan borrowers no longer need to resume their monthly payments until February 2021. The average student loan bill is around $ 400 per month.
“The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been affected,” DeVos said in a statement.
The secretary also suggested that the measure might not be the end of relief for people with student debt amid the crisis.
“The overtime also allows Congress to do its job and determine what actions it considers necessary and appropriate,” DeVos said.
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