WASHINGTON, D.C. - Secretary of Education Betsy DeVos announced Friday evening that the Trump Administration will extend the federal student loan repayment forbearance, including suspension of interest accrual and collections activity, through Jan. 31, 2021.
Center for Responsible Lending Federal Advocacy Director and Senior Counsel Ashley Harrington released the following statement:
While we are relieved that payments will not resume in January, a one-month extension is insufficient. Congress needs to approve a stimulus relief package that will pause student loan payments for the duration of the pandemic and help student borrowers plan for the future. Beyond the uncertainty for borrowers and the strain on our economy, the federal repayment system is not structured to withstand starts and stops.
Real relief is also needed as short-term payment suspension alone is not enough to help the millions of struggling borrowers. We must remember that the nation is still grappling with a surge of coronavirus cases, mass unemployment, and a fragile economy that is disproportionately affecting Black Americans and people of color. The incoming Biden-Harris Administration must keep its promise to provide substantial, across-the-board debt cancellation and take the necessary steps to prevent further financial devastation for vulnerable borrowers and communities.
###
Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org