President Trump through an executive order in August had excused borrowers from making monthly payments through the end of the year. Advocacy groups for borrowers had hoped Congress would extend the help through another coronavirus relief bill, but negotiations over the measure remain stalled.
Without further action, “borrowers will find it harder than ever to make ends meet as they are thrown back into repayment or forced collections while the economy continues to suffer,” wrote the groups, including the NAACP, the American Federation of Teachers and Americans for Financial Reform. “Waiting to address the cliff will cause unnecessary stress, confusion, and errors for borrowers, servicers, and collectors alike. If it isn’t clear by November 15 that more relief is coming for the nation’s student loan borrowers, it will be difficult for them to plan for the holiday season and beyond — making the Department’s need to act even more urgent,” the letter said.