Federal student loan payments suspended until end of January
Reuters
Published Dec 04, 2020 07:11PM ET
Updated Dec 04, 2020 09:35PM ET
By Brendan O'Brien
(Reuters) - U.S. Secretary of Education Betsy DeVos on Friday said the suspension of federal student loans payments and accruing interest set to end on Dec. 31 will be extended another month as the pandemic presents financial challenges to borrowers.
"This temporary pause in payments will help those who have been impacted," 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."
In March, the Trump administration suspended interest and payments on federal student loans for 60 days. In August, the moratorium was extended until Dec. 31 and on Friday it was extended until Jan. 31. DeVos has also instructed employers to halt wage garnishment for borrowers with defaulted federal student loans.
DeVos' announcement came after a government report earlier in the day showed the labor market slowing in November as talks aimed at delivering a fresh infusion of coronavirus relief to American families and businesses gathered momentum in the U.S. Congress.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.