Student Loan Payments Resume: Key Details
The temporary pause on student loan payments, which began in response to the economic uncertainty caused by the COVID-19 pandemic, is set to come to an end.
Common Questions 2023
Will student loan payments actually resume?
One of the most pressing questions on the minds of many borrowers is whether student loan payments will indeed resume. The answer is yes. The temporary pause on student loan payments, which began in response to the economic uncertainty caused by the COVID-19 pandemic, is set to come to an end. Starting next month, borrowers will once again be required to make their regular monthly payments on their student loans.
The resumption of payments comes after extensive discussions and policy changes at the federal level. The decision to resume payments is a significant step toward returning to the pre-pandemic state of affairs. However, the change has left many borrowers anxious about their financial situation.
Care About Us
Will student loan payments resume next month?
Yes, payments on student loans will resume next month. Borrowers used to the relief given by the payment pause should be prepared to resume their normal monthly payments.
How do I know when my student loan will be paid?
Knowing when your student loan payment is due is essential to stay on top of your financial obligations.
Here are some steps to help you determine when your payment is due:
Are student loans going to be forgiven?
For years, the issue of student loan forgiveness has been debated and discussed. While President Joe Biden's idea to cancel up to $20,000 in student debt was vetoed by the U.S. There are still opportunities for loan forgiveness, especially for public employees, according to the Supreme Court.
One such program is the Student Loan Forgiveness initiative. This program aims to provide relief to borrowers, particularly those working in public service roles. While the program may not offer blanket forgiveness for all borrowers, it does expand forgiveness opportunities for specific groups of people.
Kim Miller of LSS Financial Counseling suggests that borrowers explore income-driven repayment plans as well. One such plan is the new "SAVE" plan, which could result in a monthly payment as low as $0 per month. Some borrowers are surprised when they discover their new monthly rate under this plan.
"They check with their loan servicer. They see when their payment is due, and they see that it's zero, and then they call us going, 'Is this right?' Yes — under the new income-driven payment plan, your payment is zero," Miller said.
The Importance of Considering Extra Payments
While income-driven repayment plans and forgiveness programs help many debtors, it’s important to recognize that making extra payments might be financially beneficial. This is emphasized by Bruce McClary, Senior Vice President of Media Relations and Membership at the National Foundation for Credit Counseling.
“It just makes sense: if you have extra money, pay down your debt,” McClary explained. “Don’t just pay the minimum; this applies to any type of debt, particularly credit card debt right now.”
Temporary Protections for Borrowers
Seeking Guidance and Assistance
