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Dept. of Education Extends Suspension of Student Loan Payments and Interest Accrual

December 11, 2020

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CONTACTS
Brett Roude, Legislative Analyst

On Dec. 3, Education Secretary Betsy DeVos extended through Jan. 31 the suspension of student loan payments and interest accrual, which was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES, P.L. 116-136) and set to expire on Dec. 31.

Upon extending this borrower relief, Secretary DeVos noted, “The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted. This added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate.”

According to AAMC estimates, 2021 medical school graduates that borrowed the median level of debt ($200,000) would have an economic savings of approximately $20,000 on their total repayment cost.

Previously, the AAMC joined the higher education community in a Nov. 20 letter to Secretary DeVos urging the department to extend the suspension of payments and interest accrual due to the financial hardship many Americans are facing during the COVID-19 public health emergency [see Washington Highlights, Nov. 24].

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