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Student loan forbearance officially extended through September

NerdWallet Student Loan Cost
Posted at 7:31 PM, Jan 20, 2021
and last updated 2021-01-20 22:37:12-05

The Department of Education has officially extended a forbearance on all federal student loan repayments through the end of September following an executive order signed by President Joe Biden on Wednesday.

Biden signed the order early Wednesday evening amid one of his first duties in the White House following his inauguration.

In addition to a hold on payments coming due, no interest will be charged on borrowers. Borrowers still have the option of making payments during the forbearance.

The decision does not impact private student loans, which have generally still required repayment by Americans during the pandemic.

Federal student loans were placed in forbearance in March. In August, President Donald Trump directed previous Education Secretary Betsy DeVos to extend the forbearance through the end of 2020.

Then in December, the Trump administration extended the forbearance through the end of this month.

Meanwhile, Biden is expected to turn to Congress to forgive $10,000 in student loans for each borrower, but the liberal flank of the Democratic Party wants that amount to increase to $50,000.