Borrowers benefit from US college loans break

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The United States is once again suspending reimbursement of student loans taken out through the federal government, the Department of Education said on Friday. It is the fourth time since the outbreak of the pandemic in March 2020 that the Debt Department has given debtors breathing space. The suspension shall apply until 31 January 2022. The ministry said this will be the last extension offered to borrowers.

The moratorium was due to expire on 30 September, but Democrats in Congress had urged the Biden government to postpone that date. The public health crisis caused by the many new COVID infections caused by the Delta variant would have led to this.

All Americans with under-paid student loans from the Department of Education will automatically see their payments suspended until January 31st, with no penalty or accrued interest. All in all, according to the ministry, 41 million Americans will benefit from the continued moratorium.

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