UW-EXTENSION: Staying Up-to-Date on Federal Student Loans | Local News

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Growing news, opinions and speculation about the future of student loans have been hot topics throughout the year.

There are approximately 45 million borrowers in the United States who currently have student loan debt. Of these student loans, approximately 92% are federal loans held by the US Department of Education. In 2020, we saw student loan payments held by the federal government suspended at the start of the pandemic, with the date for resuming payments being pushed back a few times throughout the year.

Federal student loan forbearance

Most recently, on December 4, the United States Department of Education announced an extension of the administrative forbearance period for federal student loans, a pause on accrued interest, and a suspension of collection activities until January 31. The abstention period was previously scheduled to end. the 31st of December.

This applies to federal student loans held by the US Department of Education, including:

Direct loans in default and not in default

FFEL program loans in default and not in default – Federal only, not those held by commercial lenders

Federal Perkins Loans – Federal only, not those held by educational institutions

Now, the US Department of Education is working with Federal Lending Services to advise borrowers that current relief measures will continue until the end of January.

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