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White House extends interest pause on student loans

White House Press Secretary Psaki holds the daily press briefing at the White House in Washington

WASHINGTON (Reuters) – The White House will expand a pause on student loan interest and collection for more than 1 million borrowers currently in default as it reviews its options, press secretary Jen Psaki said on Tuesday.

The pause on collections covers loans made by private lenders under the Federal Family Education Loan program, a move that will protect the tax refunds of about 800,000 borrowers.

“We are still taking a closer look at our options on student loans. This includes examining the authorities we have, the existing loan forgiveness programs that are clearly not working as well as they should,” Psaki said.

(Reporting by Trevor Hunnicut; writing David Shepardson; editing by Chris Reese)

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