Student loan servicers told to hold off on sending billing details

WASHINGTON — The federal government has been instructed to prohibit student loan service contractors from sending billing statements before one. August 31 deadline to end pandemic freeze On loan payments, it gives companies little time to start the debt collection process when payments resume.

The future of the federal student loan portfolio is in the balance as President Biden considers whether to cancel a limited amount of loans for borrowers whose income falls under a certain threshold. The president and his advisers have been debating the issue for more than a year, frustrating activists and progressive Democrats, and shunning borrowers, loan officers and other stakeholders about what happens next.