“In the coming weeks, we will be releasing more details about our plans and will be engaging directly with student borrowers to ensure that they have the necessary resources and are on board. proper repayment,” she added.
Borrowers’ balances have been frozen for nearly two years, most don’t need to pay federal student loans as of March 2020. During this time, interest has ceased to accrue and defaulted collections have been withheld.
Both Biden and former President Donald Trump took action to extend the pause. Most recently, Biden moved the payment restart date from September 30, 2021 to January 31, 2022, but the administration at the time made it clear that this would be the final extension.
Some Democrats call on Biden to extend relief
Senate Majority Leader Chuck Schumer of New York, Senator Elizabeth Warren and Representative Ayanna Pressley, both of Massachusetts, pressured Biden to extend the student loan moratorium .
Schumer, Warren and Pressley are also continuing to urge Biden to take further action and cancel student loan debt of up to $50,000 each.
Biden said during the presidential campaign that he would support the cancellation of $10,000 for each borrower, but has taken no action beyond directing federal agencies to conduct a review of whether he is qualified. rights or not.
Asked on Tuesday about that campaign pledge, Psaki said the executive body involved in student debt relief is still under review, adding that the President supports congressional action on the issue. this.
“If Congress sends him a bill, he’s happy to sign it. They haven’t sent him a bill on that yet,” she said.
Preparing to continue paying
Most borrowers with federal student loans have not had to make any payments since March 2020. Direct loans, as well as PLUS, student loans graduates and parents on behalf of their children, are eligible for benefits. Some federal loans that are guaranteed by the government but not technically held by the government, known as the Federal Family Education Loan, or FFEL, are not eligible. Generally, these were disbursed before 2010.
The relief makes even more sense for people who work in the public sector and may qualify for federal student status. loan forgiveness after 10 years. They still get credit for those 10 years of mandatory payments as if they had continued to do so during the pandemic, as long as they were still working full-time for qualified employers. .
According to the Department of Education, borrowers will receive a payment statement or other notice at least 21 days before their payment is due. Those who have set up automatic payments may need to notify their loan service the company they want the to continue.
This story has been updated with additional information.
CNN’s Maegan Vazquez and Jasmine Wright contributed to this report.
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