Student loan companies told not to send resume payment notices: report
By Alex Gangitano - 03/09/22 10:44 AM EST
The Biden administration is directing companies to not send out notices about student loan payments resuming in May, signaling that the two-year freeze on payments could be extended again.
The Department of Education told companies that service federal student loans to hold off on notices to borrowers about restarting payments, CNBC reported, citing two people familiar with the matter.
When asked to confirm the directive to companies, a Department of Education spokesperson told The Hill that the agency is communicating regularly with servicers.
“The Department will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates. The Department’s Federal Student Aid office will also continue communicating regularly with servicers about the type and cadence of servicer outreach to borrowers,” the spokesperson said.
The White House is reviewing an extension, press secretary Jen Psaki told reporters last week. Her comments follow chief of staff Ron Klain, who said on an episode of the podcast “Pod Save America” that Biden is looking “at what we should do on student debt before the pause expires, or he’ll extend the pause.”
The payment pause, which first began through a moratorium enacted under then-President Trump in March 2020, has been extended five times. It is set to expire on May 2 after Biden extended it in January.
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https://thehill.com/homenews/administration/597493-student-loan-servicing-companies-directed-to-hold-payment-notices
