Student borrowers will know “soon” whether the pause in federal loan repayments will be extended, according to Department of Education Secretary Miguel Cardona.
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The current payment pause, which began during the COVID-19 pandemic, is scheduled to end on August 31.
Cardoon told CBS News Tuesday that borrowers will know “soon” if they need to start repaying their debt.
“Although I don’t have an announcement here today, I will tell you that we are having daily conversations with the White House and borrowers will hear directly from us soon when a decision is made,” Cardona said.
In April, President Joe Biden extended the student loan payment break until August 31. Cardona did not elaborate on talks about extending the hiatus, but said the issue was a priority for Biden.
“The president has been very clear about making sure we lead with students first, and we’re proud of the $28 billion in loan forgiveness so far and the policies we’ve changed to fix a broken system,” says Cardone. “We recognize that the Americans are waiting and we will communicate with them as soon as possible.”
Earlier this month, Republicans in Congress introduced legislation intended to restart payments. The Responsible Education Assistance through Lending (REAL) Reforms Act would undo the suspension of student loans.
The pause is believed to be extended again after the Department of Education last month told loan companies that handled federal student loans to stop contacting borrowers about resuming payments.
However, some companies handling the loans say they don’t yet know when payments will resume.
The pause affects those with federal student loans.
President Joe Biden has promised to announce whether he will forgive federal student loans to other borrowers by the end of August.
Biden had been pressured to forgive up to $50,000 in federal student loan debt. He said he would not consider that amount, but he indicated that he was considering forgiving up to $10,000 in student debt.
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