Department of Education Extends Student Loan Break to Federal Family Education Loans Program
On Tuesday, the US Department of Education announced it would extend its hiatus on federal student loans to delinquent loans under the Federal Family Education Loans (FFEL) program. This relief will be applied retroactively from March 13, 2020, the start of the pandemic.
The FFEL program allows private lenders, insured by guarantee agencies, to grant federal student loans, reinsured by the federal government. From now on, the Ministry of Education will apply its 0% interest rate and freeze loan collections to 1.4 million borrowers in default of private FFEL program loans. For loans in default during the COVID-19 crisis, the default record will also be removed.
“At a time when many student loan borrowers face economic uncertainty, we are ensuring that the relief already provided to borrowers of loans held by the Ministry is available to more borrowers who need it. the same help so that they can focus on their basic needs, ”Education Secretary Dr Miguel Cardona said in a statement. declaration. “Our goal is to enable these struggling borrowers to obtain the same protections previously made available to tens of millions of other borrowers to help overcome the uncertainty of the pandemic.”
The break on federal student loans runs until September 30, 2021.