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US govt extends suspension of federal student loan payments

Published at 09:33 am December 5th, 2020

US Education Secretary Betsy Devos speaks during a signing ceremony for the White House Hispanic Prosperity Initiative in the Rose Garden at the White House in Washington, DC on July 9, 2020 Reuters

“This temporary pause in payments will help those who have been impacted,” the US Secretary of Education said in a statement

US Secretary of Education Betsy DeVos on Friday said the suspension of federal student loans payments and accruing interest set to end on December 31 will be extended another month as the pandemic presents financial challenges to borrowers.

“This temporary pause in payments will help those who have been impacted,” DeVos said in a statement.

“The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate.”

In March, the Trump administration suspended interest and payments on federal student loans for 60 days. In August, the moratorium was extended until December 31 and on Friday it was extended until January 31. DeVos has also instructed employers to halt wage garnishment for borrowers with defaulted federal student loans.

DeVos’ announcement came after a government report earlier in the day showed the labor market slowing in November as talks aimed at delivering a fresh infusion of coronavirus relief to American families and businesses gathered momentum in the US Congress.