President Joe Biden will extend the student loan freeze through Aug. 31, but the news is likely to bring little satisfaction to borrowers seeking long term relief.
Interest on federal student loans will also remain at zero, and collection efforts for past due debts will stay on hold for 41 million Americans with federal student loans.The Education Department will allow all borrowers a chance to restart payments without impact from previous penalties from overdue payments, according to a news release.
The agency also said it would continue providing relief to borrowers whose universities defrauded them. It also said it would streamline the Public Service Loan Forgiveness program, a government initiative meant to offer debt relief to those working in the public sector.that has already resulted in identifying more than 100,000 borrowers eligible for roughly $6.4 billion in relief, according to the Education Department.
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