Student loan payments have been put on hold again as the US continues its battle with the financial woes caused by the COVID-19 pandemic, but when does the government plan to bring back loan payments to students?
The Student loan suspension It has been extended until August of 2022, although this is not an indefinite deferment for those studying for college qualifications.
The aforementioned extension, announced by President Biden on Wednesday, would mean that more than 43 million Americans could defer their federal student loan payments for longer, without risking any additional interest being collected.
Many Americans are getting back to work After the early stages of the pandemic that wiped out the country’s labor market, people are still grappling with record high inflation.
When will student loan repayment be resumed?
At present, the US government It expects to restart the student loan payment plan on August 31, 2022, which is the scheduled expiration date of the moratorium on these payments.
With only 150 days before this deadline, there is plenty of time for members of the public to put their finances in order and set aside money to pay them off.
Understandably, those with outstanding student loans owe the federal government $1.6 trillion, according to figures released by CNBC.
Further extensions are unlikely, according to the government, so it would be unwise for people to plan further extensions at this point.
What should people do before August?
In order to fully prepare for a repayment resumption, there is a recommendation that people contact their Federal Loan Officer to ensure that they still qualify for the repayment halt.
Moreover, members of the audience You should start planning to repay the money As soon as possible in September, with a plan in place to ensure that debts are not likely to escalate once repayment demands begin.
Finally, there are many repayment options available to people, including improving your credit score to make sure you don’t pay more than the odds of paying off your student loans.