Department of Education has advised loan servicer do not contact borrowers.
Have you recently received a phone call or voicemail from your student loan servicer? That phone call should not have happened since the Department of Education has advised them not to contact borrowers about resuming payments.
The Wall Street Journal first confirmed this on Monday that loan servicers have been told not to contact borrowers.
President Joe Biden in April extended the pause on federal loan repayments until Aug. 31, saying the nation was still recovering from the coronavirus pandemic. "I know folks were hit hard by this pandemic. And we've come a long way in the last year. We're still recovering from the economic crisis it caused," Biden said in a video statement. "This continued pause will help Americans breathe a little easier as we recover and rebuild from the pandemic."
President Biden had been facing pressure from some Democrats as well as student loan borrowers. Debt relief advocates believes President Biden needs to issue another extension on student loan payments as major legislative priorities — such as his Build Back Better agenda and voting rights — remain stalled in Congress. There has been concerns whether or not if the President should cancel all student loan debt due to inflation and rising food prices grip the country. There are signs from Federal Government that President Biden may take sufficient actions towards student loan debt.
A White House official said Monday night that “no decision has been made" about whether to extend it again. An official said President Biden will make a decision before Aug. 31. While millions of student loan borrowers awaits for the President decision. Repayments on federal student loans were first paused more than two years ago when the pandemic started.