February’s student-loan payment restart will run into a ‘psychological hurdle’ as many borrowers thought their debt would be forgiven, Biden official says

February’s student-loan payment restart will run into a ‘psychological hurdle’ as many borrowers thought their debt would be forgiven, Biden official says

In February, student-loan borrowers will once again have to start making regular payments on their debt — and they are not ready. The student-loan payment freeze during the pandemic has been three times to give borrowers additional financial relief. But the most recent extension through February is final, and a top Education Department official warned the payment resumption will be especially challenging for borrowers who were led to believe their debt would be forgiven. Richard Cordray, director of the Education Department's Federal Student Aid (FSA) office, spoke to the Education Finance Council last week about challenges the department is facing in higher education. He said, in obtained by Politico, that transitioning tens of millions of student-loan borrowers back into repayment will be a significant challenge, and the multiple extensions of the payment pause sowed "tremendous confusion about what even the immediate future may hold." "At the same time, borrowers have been hearing a steady drumbeat about the possibility of loan forgiveness, either wholesale or piecemeal," Cordray said. "The old saying is that 'the wish is father of the thought,' and we can expect that many, many borrowers will not be eager to return to repayment when they have been led