The temporary pause on the refund of student loans has been extended as of January 31, 2022, the Department of Education announced on Friday. Refunds were originally scheduled to resume on October 1, 2021.

This is the fourth time that the repayment break has spread since it was promulgated for the first time in March 2020 by the Law of Help , Relief and economic security of Coronavirus. Under the pause, all student loan payments have been suspended, each borrower has had its interest rate established at zero percent and the collections on predetermined loans have been paused.

The department said that with the additional time and a definitive end date, borrowers may plan the resumption of payments, reducing the risk of delinquency and predetermined values ​​after reboot. He also said that it will be working to facilitate a transition without problems so that borrowers return to reimbursement, which includes improvements to student loan services.

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    " Payment pause has been a line of life that allowed millions of Americans to focus on their families, health and finance instead of student loans during the national emergency "said Secretary of Education Miguel Cardona in a launch. "As the economy of our nation Continues to recover from a deep hole, this final extension will give students and borrowers the time they need to restart and guarantee a smooth way back for reimbursement."

    Recent survey data has been displayed the extension of the borrowers was probably necessary. An analysis by Pew's charitable trustees found that two thirds of respondents to a survey conducted this past spring, said it would be difficult for them to pay payments if they resumed a month from the date they took the survey. Another survey, carried out by the crisis of the student debt, showed that 90 percent of the nearly 24,000 borrowers respondents said they were not ready to resume payments in October.

    Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators, said that, although the organization welcomes the decision, the department must begin to prepare for the restart immediately .

    "The transition from millions of borrowers again in reimbursement can not be done simply by turning a switch and may even require a gradual implementation," Draeger said. "Delays can not continue indefinitely, and urge the Secretary of Education to use the authority of it under this national emergency to simplify reimbursement processes as much as possible, with the most beneficial terms and conditions as possible." Googleg.cmd. push (function () googleg.display ("dfp-ad-article_in_article"););

    Education chair and Labor Committee of the House Bobby Scott, a Democrat of Virginia, also applauded the decision, saying that the extended pause will help continue the boost of our economic recovery and give the borrowers of student loans the time They need to increase their financial security before restarting. "

    Other democratic legislators offered alogceles by the decision, but still implored that the administration would do more to address the crisis of the student debt. The majority leader of the Senate Chuck Schumer in New York, Senator Elizabeth Warren of Massachusetts and the Ayanna Pressley representative of Massachusetts, who have been vocal about the need to extend the pause, said that President Biden still needs us.

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