when will studen loan payments resume

when will studen loan payments resume

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The COVID-19 Pandemic and Student Loan Payments

when will studen loan payments resume

Readers,

The COVID-19 pandemic has had a significant impact on millions of student loan borrowers across the United States. In response to the economic hardship caused by the pandemic, the federal government implemented a pause on student loan payments and interest accrual in March 2020. This pause has been extended several times, most recently through August 31, 2022.

With the end of the current pause approaching, many borrowers are wondering when they can expect to resume making payments. In this article, we will delve into the latest news and updates on the student loan payment pause, exploring possible dates for resumption and discussing the potential implications for borrowers.

President Biden’s Announcement

On April 6, 2022, President Biden announced that the student loan payment pause would be extended one final time, through August 31, 2022. This extension provided borrowers with an additional four months to prepare for the resumption of payments.

Possible Resumption Dates

Following the expiration of the current pause on August 31, 2022, student loan payments are expected to resume in September 2022. The exact date of resumption will depend on the specific repayment plan in which the borrower is enrolled.

Standard Repayment Plan

For borrowers on the Standard Repayment Plan, payments will likely resume on the first business day following August 31, 2022. This means that the first payment due date under the Standard Repayment Plan will likely be Monday, September 1st, 2022.

Income-Driven Repayment Plans

For borrowers on Income-Driven Repayment (IDR) plans, payments will likely resume on the date that would have been the next payment due date if the pause had not been implemented. This means that the resumption date for borrowers on IDR plans will vary depending on their individual payment schedules.

Other Considerations

In addition to the resumption dates, borrowers should be aware of the following considerations:

Loan Forgiveness

The Biden administration has proposed a plan to forgive up to $10,000 in federal student loan debt for borrowers earning less than $125,000 per year. If this plan is approved, it will provide significant relief to millions of borrowers.

Income-Based Repayment Options

Borrowers who are struggling to make their monthly payments may be eligible for income-based repayment plans, which reduce the monthly payment amount based on the borrower’s income.

Deferment and Forbearance Programs

Borrowers who are experiencing financial hardship may be eligible for deferment or forbearance programs, which allow them to temporarily stop making payments without damaging their credit.

Table: Student Loan Repayment Resumption Dates

Repayment Plan Resumption Date
Standard Repayment Plan September 1st, 2022
Income-Driven Repayment (IDR) Plans Varies depending on individual payment schedules

Conclusion

Readers, as we approach the end of the student loan payment pause, it is important for borrowers to stay informed about the latest news and updates. The information provided in this article will help you prepare for the resumption of payments and make informed decisions about your student loan repayment options.

If you have any further questions or concerns, we encourage you to visit the Federal Student Aid website or contact your loan servicer directly. Additionally, you can explore our other articles for more information on student loans, repayment options, and financial planning.

FAQ about When Will Student Loan Payments Resume

When will federal student loan payments resume?

Answer: Payments are set to resume 60 days after the U.S. Department of Education announces the end of the payment pause, which is expected to happen in August 2023.

How will I be notified when payments resume?

Answer: The Department of Education will send you a notice at least 30 days before payments resume.

Will I have to make up the payments I missed during the pause?

Answer: No, you won’t have to make up the missed payments. However, interest will continue to accrue on your loans during the pause.

What if I can’t afford to resume payments when they start?

Answer: You can contact your loan servicer to discuss repayment options, such as income-driven repayment plans or deferment or forbearance.

Will the payment pause be extended again?

Answer: As of now, there are no plans to extend the payment pause again.

How do I find out more about my student loans?

Answer: You can log in to your account at StudentAid.gov or contact your loan servicer.

Will I get a refund for the payments I made during the pause?

Answer: No, you will not get a refund for payments made during the pause. However, any payments you made that were more than the amount of interest that accrued will be applied to your principal balance.

What is the interest rate on my student loans?

Answer: The interest rate on your student loans varies depending on the type of loan and when it was taken out. You can find your interest rate on your loan statement or by logging in to your account at StudentAid.gov.

How much do I owe on my student loans?

Answer: You can find out how much you owe on your student loans by logging in to your account at StudentAid.gov or by contacting your loan servicer.

What happens if I don’t make my student loan payments?

Answer: If you don’t make your student loan payments, you could default on your loans. This could damage your credit score and make it difficult to get future loans.

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