Trump Administration Extends Student Loan Relief for One Additional Month
The Trump administration has extended student loan relief for one additional
month. Student loan relief was set to expire on Dec. 31, but now it will expire on Jan. 31, 2021.
Like the past extension, this extension continues the freeze
on monthly payments and on interest. Non-payments will continue to count toward
the number of payments required under an income-driven repayment plan, a loan
rehabilitation agreement or the Public Service Loan Forgiveness program. Additionally,
wage garnishments for borrowers with defaulted federal student loans will continue
to be prohibited, and any defaulted borrowers who continue to have their wages garnished will receive refunds.
Further extension of student loan relief is part of the ongoing negotiations surrounding
an additional COVID-19 relief package, which remains stuck in Congress.