(Washington) The Biden government on Friday announced in a statement that it would extend a four-month student loan repayment deadline to January 30, 2022 to address financial difficulties related to the COVID-19 pandemic.
Posted on Aug 6, 2021 at 5:23 pm
The Department of Education advises that this is “a final deadline” and hopes that this new schedule will “allow borrowers to schedule repayments to resume and that this will reduce the risk of default.”
The suspension of student loan repayment was one of the components of a contingency plan for the pandemic approved by the Trump administration in March 2020.
Americans’ debts in general, and to finance their education in particular, have continued to grow in recent years.
According to a June 2021 report by the US Federal Reserve, the total of student loans in the US has now reached $ 1.7 trillion, the second largest item of household debt after real estate.