- The
Education Department told student-loan companies to halt outreach on the payment restart date. - Politico first reported the development as the latest sign payments might not resume on May 1.
President Joe
Politico first reported on Tuesday that the Education Department directed federal student-loan companies to halt sending notices to borrowers about the payment resumption, according to sources familiar. Typically, leading up to the date loan payments are expected to resume, companies would alert borrowers to begin preparing to pay off their debt. The instruction to hold off on those notices may signal Biden will extend the student-loan payment pause a fourth time.
"From Day One, the Biden-Harris Administration has been committed to providing meaningful relief to student loan borrowers including the 41 million borrowers who have saved tens of billions as a result of the extended student loan payment pause," an Education Department spokesperson told Insider. "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."
Federal student-loan payments have been on pause, with waived interest, for the duration of the pandemic, giving 43 million borrowers temporary relief as the $1.7 trillion
Based on recent developments, the pressure on Biden might be working. White House Chief of Staff
"The President is going to look at what we should do on student debt before the pause expires, or he'll extend the pause," Klain said, adding that "the question whether or not there's some executive action on student debt forgiveness when payments resume is a decision we're going to take before payments resume."
While Republican lawmakers have decried another student-loan payment pause extension, citing its cost to taxpayers and the
"The ultimate persuasion is impact, and Democrats win when we deliver bold, impactful policies that improve the daily lives of our constituents," Massachusetts Rep.