Student Loan Payments Paused until May 1, 2022

President Biden announced student loan payments paused until May 1, 2022. The student loan moratorium has allowed tens of millions of Americans to put off student loan debt payments during the pandemic. Originally scheduled to end in January, 2022, Biden stated he understood student loan borrowers are still coping with the impact of COVID-19 and need more time before resuming payments.

In a survey, nearly half (49%) of about 500 borrowers felt “not at all confident” they would be able to make their student loan payments come Feb. 1, according to research from the progressive group Data for Progress.

The extension of the loan moratorium comes as decision whether to erase student debt altogether is still on the table.

Student Loan Borrowers Need to Be Responsible

It is important student loan borrowers be responsible and proactive in managing their student loan debt, such as:

  • take full advantage of the Department of Education’s resources to help you prepare for payments to resume;
  • look at options to lower your payments through income-based repayment plans; and
  • explore public service loan forgiveness.

Read President Biden’s statement on the student loan repayment freeze.

It is anticipated more than 7 million borrowers currently in default may have the hardest time once loan payments resume. The Department of Education has resources to help borrowers get out of default.

Find more discussions on student loans in the forum.

Dana

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