Student loan servicers told to hold off on sending out billing notices, a sign payment pause may be extended

Two sources familiar with the matter say that federal student loan servicers have been told not to send reminders to borrowers.

The Biden administration may be considering extending the pause on student loan payments again. The policy was put in place in March of 2020.

The relief opportunity has been used by nearly all borrowers.

Less than 1% of people got a perfect score on the Social Security quiz.

The payments are expected to resume after August 31, but there is a chance they will be paused for at least two more years.

The US Department of Education continues to assess the impact of the coronaviruses on student loan borrowers. The end of the payment pause will be communicated to loan holders by the Education Department.

More than 40 million Americans are in debt for their higher education, with a balance that surpasses credit card or auto debts. More than 10 million people were in some form of default on their debt before the swine flu hit. There are parallels to the 2008 mortgage crisis.

Sources say that it is possible that the Biden administration will announce debt cancellation at the same time as prolonging the payment pause.

It would take a long time to give billions of dollars in debt, and restarting the bills before the relief process is completed would be a mess.

The White House is under pressure to cancel more student debt after it was reported that it was leaning towards doing so. The president has been pressured by politicians and groups to wipe out at least $50,000 for everyone.

Wisdom Cole, national director of the NAACP's Youth and College Division, said that nixing just $10,000 would be a slap in the face for Black borrowers, who often have to borrow more than their white peers.

Many Americans, including those who never borrowed for their education or went to college, will be angry at the idea of student loan forgiveness. The ranking member of the House Ways and Means Committee called student loan forgiveness a gift to college graduates.

According to a poll, the majority of voters support student loan forgiveness.