The Biden administration appears to be gearing up for yet another extension of the student loans pause that began in March 2020 and may still elect to try to "cancel" up to $10,000 of debt per borrower via executive action.
Student loan servicing contractors for the federal government are being told to hold off on sending out billing statements as the Aug. 31 deadline looms for when a loan payment freeze of more than two years is set to end, according to a report.
“The situation is that we’re almost 30 days away from the planned resumption, and the [Education Department] has been telling servicers to hold off on resumption communications for the last few months," Student Loan Servicing Alliance Executive Director Scott Buchanan told the Wall Street Journal. “Maybe the department expects that the White House will yet again kick the can down the road.”
