Dec 5, 2020 - Economy & Business

DeVos extends federal student loan relief to Jan. 31

Photo of Betsy DeVos' side profile against the backdrop of an American flag
U.S. Secretary of Education Betsy DeVos. Photo: Nicholas Kamm/AFP via Getty Images

The Trump administration is extending federal student loan relief, which includes a pause on payments and interest accrual, through Jan. 31, the Department of Education announced Friday.

Why it matters: Payments have been paused since March due to the coronavirus pandemic, but the relief was set to expire on Dec. 31 . The relief measures, which also include the suspension of collections of defaulted federal student loans, have helped mitigate some of the pandemic's negative consequences for millions of borrowers.

What she’s saying: "The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted," Education Secretary Betsy DeVos said in a statement.

  • "The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate."
  • The Office of Federal Student Aid will work with servicers to notify borrowers of the latest extension.

Worth noting: Student debt forgiveness and tuition-free college are two key elements of President-elect Joe Biden’s agenda for higher education — proposals Devos has criticized.

🎧 Go deeper: Joe Biden's plan to forgive student debt

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