The companies that service federal student loans have been told by the U.S. Department of Education not to send out notices about payments restarting in May, according to two people familiar with the matter.
The servicers that would have sent reminders to borrowers at the end of the month are holding off.
The Biden administration is considering extending the payment pause for federal student loan borrowers again. It's not clear how much more time the borrowers will get.
When the coronaviruses first hit the U.S., most federal student loan holders have been given the option not to pay their monthly bill and interest hasn't been allowed to accrue on their debt in the meantime.
The Education Department will continue to communicate with servicers about outreach to borrowers.
Big raises may be coming back down to earth.
The reprieve impacting more than 25 million Americans has been extended five times, and is set to end on May 2.
The White House Chief of Staff said earlier this month that the Biden administration wanted to make a decision on debt cancellation before turning the payments back on.
The president will either extend the pause or look at what we should do about student debt.
On the campaign trail, President Joe Biden promised to quickly cancel $10,000 per borrower, but he is under pressure from some Democrats and advocates to wipe out more. Schumer and Warren want him to cancel up to $50,000 for all.
More than 70% of Latino and Black voters are in favor of Biden canceling some or all of his student debt, according to a recent poll.
Thomas Gokey, co- founder of the Debt Collective, said that it was clear that the White House was responding to the pressure.
Gokey said that a few months ago they were adamant that they had extended the payment pause for the last time.
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