Cardona: We’ll Hold People Harmless on Paying Student Loans for a Year So They Can Get Back on Their Feet

During portions of an interview with NBC News Business and Data Reporter Brian Cheung aired on Tuesday’s broadcast of “NBC Nightly News,” Education Secretary Miguel Cardona stated that because “many” borrowers “are going to struggle” to make payments on their student loans when the payments resume after the payment pause ends in October, but to ensure people don’t have their credit scores harmed for struggling to pay, “we’re going to hold them harmless for a year as they’re getting back up.”

Cardona said that people shouldn’t boycott paying back their loans altogether because “The loans are still there, and the repayment is still needed.” But “We know many of our borrowers are going to struggle to make payments, but we want to make sure that we’re not sending their name to credit agencies. So, we’re going to hold them harmless for a year as they’re getting back up.”

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