Education Department pauses student loan bills, awaiting Congress or Trump to act

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The Education Department has ordered the companies that collect federal student loans to temporarily postpone sending bills to borrowers as the Trump administration figures out how to handle the looming expiration of student loan relief

that it faces a “heavy burden” to suddenly restart the monthly payments of more than 23 million accounts at once, potentially leading to a spike in delinquencies.

But internally, department officials have also discussed the possibility of effectively pushing the due date on federal student loans from January to February, even without further executive action from Trump. At issue is how the Education Department interprets a complicated array of federal requirements governing when monthly payments resume following a period of forbearance.

The strategy would not address the interest on federal student loans that is set to begin accruing on Jan. 1, though the Education Department previously retroactively forgave the interest that accrued on student loans for several weeks in March, just before the CARES Act took effect.

 

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I’m glad that at least one department is doing their job and thinking of the people during this crisis.

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