FOR IMMEDIATE RELEASE
Contact: Allie Arcese
WASHINGTON, D.C., APRIL 6, 2022 — The Department of Education (ED) today announced it will extend the pause on student loan payment and interest accrual past its May 1, 2022 expiration date. Following months of pressure from top Democrats and advocacy organizations, the pause on payments will now be in place through August 31, 2022. Additionally, borrowers who were delinquent on their loan payments or in default prior to the freeze will be given a fresh start upon the resumption of payments.
“We applaud the Biden-Harris administration for giving borrowers who were struggling even before the pandemic the chance to course correct and get back on track with their loan payments. This action will provide targeted relief to millions of borrowers who desperately need assistance. However, these borrowers remain at high risk of falling back into delinquency and default, and the Office of Federal Student Aid must plan future efforts to keep them on track.
Of course, communication leading up to the resumption of payments in September will be key for all borrowers. We urge the Department of Education to develop and roll out a smooth, efficient on-ramp to repayment. After more than two years without student loan payments, transitioning millions of borrowers back into repayment cannot happen at the drop of a hat.
At the same time, the Department must examine the student loan system as a whole and how it can be improved for borrowers. We look forward to exploring ongoing solutions with our federal partners in the weeks ahead."
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 32,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, DC, NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.
Publication Date: 4/6/2022