From CNBC.com…..
The Biden administration is expanding an existing pause on student loan interest and collections to include more than 1.1 million borrowers who are in default, the U.S. Department of Education announced Tuesday.
The borrowers, whose defaulted loans are part of the Federal Family Education Loan program, were ineligible for the current payment pause and interest waiver — implemented last year by the Trump administration and extended by President Biden through September — due to their loans being held by private entities.
“Now those defaulted loans will be eligible,” said higher education expert Mark Kantrowitz.
The action will protect more than 800,000 borrowers who were at risk of having their federal tax refunds seized to repay a defaulted loan, according to the Education Department. This relief will be made retroactive to March 13, 2020, the start of the Covid-related national emergency.
