July 13, 2021

CNBC: Senators Warren, Smith and Markey urge Biden to extend federal student loan pause to March 31, 2022

Since March 27, 2020, federal student loan interest rates have been set to 0% and payments have been paused, giving borrowers roughly $72 billion in student loan interest relief and helping many make ends meet during the pandemic. But payments are set to resume on Oct. 1, 2021.

On June 21, Democratic Senators Elizabeth Warren, Tina Smith and Edward J. Markey sent letters to the CEOs of all federal student loan servicers requesting information about the steps the companies are taking to transition millions of federal student loan borrowers back into repayments once the moratorium ends. The letter expresses concerns that borrowers may not be financially prepared to make payments after the pandemic and that millions of borrowers will call servicers at once and overwhelm the system. 


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By:  Abigail Johnson Hess
Source: CNBC