The U.S. Department of Education has extended the student loan payment pause for repayment of student loans. This extension affects more than 3 million Texans with outstanding federal student loan debt.
Student federal loan payments and interest will resume on Jan. 31, 2022. According to a U.S. Department of Education press release, “the department believes this additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after the restart.”
Known as a forbearance, the interest-free federal student loan payment pause went into effect in March 2020 and has been extended three times as borrowers experienced a financial crisis due to the COVID-19 pandemic.
“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” said U.S. Secretary of Education Miguel Cardona. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for the restart and ensure a smooth pathway back to repayment.”
According to Lending Tree, there are 3.6 million Texans with an outstanding debt of $117.5 billion in student loans.
The average Texas borrower owes more than $31,300 in federal and private student loans, averaging a $267 monthly payment.
It is essential to note the student loan repayment pause is only for federal loans. Borrowers with private student loans are still required to make payments.