The U.S. Education Department said on Tuesday that it would extend the pause on student loan payments. More than one million borrowers would be given relief by the effort.
Federal student loan payments remain suspended through September 2021. Some advocates hope that by then a deal will be reached on deferring, or cancelling student debt- at least a portion of it.
“Our goal is to enable borrowers who are struggling in default to get the same protections previously made available to tens of millions of other borrowers to help weather the uncertainty of the pandemic, Education Secretary Miguel Cardona said on Monday.
The Education Department said it’s working to return tax refunds or wages that were seized over the last year to cover the defaulted loans. Borrowers can also request refunds for any voluntary payments they made during the past year.
Meanwhile, loans that went into default since March 13, 2020, will be returned to good standing.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].