Secretary Devos extends the student loan tolerance period until January 31, 2021, in response to the national emergency Covid-19 December 4, 2020 Contact: Press office, (202) 401 -1576, press@ed.gov
Washington - Secretary of USA Betsy Devos today announced the extension of the Federal Student Loan Tolerance, the Pause on the Accumulation of Interest, and the suspension of the activity of the collections until January 31, 2021. It is not expected that The Borrowers of the Federal Student Loan make payments until January next year, although they will continue to be able to do it and benefit the interest rate of 0% as they pay the principal. Non-payments will continue to count towards the amount of payments required under a payment plan promoted by income, a loan rehabilitation agreement or the public loan forgiveness program.
"The Coronavirus pandemic has presented challenges for many" students and borrowers, and this temporary pause in payments will help those who have been affected, "said Secretary Devos." The additional time It also allows Congress to do its work and determine what measures you believe are necessary and appropriate. Congress, not the executive power, is in charge of student loan policy. "
FSA is now working with federal student loan administrators to notify borrowers that current relief measures will continue until End of January. In March 2020, the Secretary Devos instructed employers to stop salaries administrators for borrowers with unfulfilled federal loans. That instruction remains in place, and any lend it for non-compliance that continues having its ornate salary will receive reimbursements .
On March 13, the Trump President, a statement of a national emergency resulting from the PANDEMIC Covid-19, Secretary Devos immediately used his authority under the 2003 Heroes Law to establish all rates of interest of federal student loans to zero and automatically enter borrowers in administrative tolerance, which allows them to Plazing payments without financial penalty. The Secretary of August, the Secretary DeVos complied with the President's chairman of the President of Emergency Aggostry Emergency Test alleviate the student loan by extending the benefits of the Borrower of the Cuidre Law until December 31, 2020.
The department continues to update ed.gov/coronavirus with information on Covid-19 for students, parents, educators and local leaders. For more information about COVID-19, visit the following websites: coronavirus.gov, cdc.gov/coronavirus/2019-cov/index.html and usa.gov/coronavirus.
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