US Secretary of Education Betsy DeVos attends the “Getting America’s Children Back to School Safely” event in the State Room of the White House in Washington, DC, on August 12, 2020.
NICHOLAS KAMM / AFP via Getty Images
The Secretary of the United States Department of Education, Betsy DeVos announced on Friday that the payment break and the interest waiver for student borrowers will be extended to the end of January.
The department announced that it would cease collecting federal student loan collections, including garnishments of wages and social security checks, by next year.
The 42 million Americans on federal student loans were offered a break from their monthly bills in March as it became clear that the coronavirus pandemic would increase unemployment. That relief was supposed to expire in September, but President Donald Trump signed an executive order in August that continued the interest-free grace period through December.
Now federal federal loan borrowers will not have to resume their monthly payments until February 2021. The average student loan bill is $ 400 per month.
“The coronavirus pandemic has challenged many college students and borrowers, and this temporary suspension of payments will help those affected,” DeVos said in a statement.
The secretary also suggested that the move may not mark the end of relief for those with student debt in crisis.
“The extra time also allows Congress to do its job and determine what action it deems necessary and appropriate,” DeVos said.