Will the student loan payment pause be extended? Reports indicate it’s possible

Sources say servicers were told to hold off sending billing notices

Some employers and the government are now helping with student loan debt (WPLG)

There’s a possibility that the student loan payment pause will be extended.

CNBC reported that student loan servicers were told to hold off on sending out billing notices, signaling the payment pause could continue.

According to CNN, the last time an extension was announced it came just 24 days before payments were set to resume. Servicers are required to send out billing statements at least 21 days before a payment is due, but usually, send them more than 30 days in advance.

That decision to hold off sending statements could indicate that President Joe Biden’s administration is considering the payment pause on federal student loans again. The policy has been in place since March of 2020 and allows people to not make payments toward their student debt and puts a freeze on interest.

The payments are scheduled to resume after Aug. 31, but experts believe it could be extended to 2023.

Sources told CNBC that Biden could make an announcement on debt cancellation at the same time as prolonging the payment pause. Recent reports have indicated that Biden is leaning toward canceling $10,000 in student debt for most borrowers.

Read: Did your student loans get transferred to a new servicer? Here’s what to know

About the Author:

Kayla is a Web Producer for ClickOnDetroit. Before she joined the team in 2018 she worked at WILX in Lansing as a digital producer.