Potential Great News for Parent & Student Loan Borrowers
This is very big and (potential) great news for parent and students regarding your student loan payments.
While you were sleeping, last night, The United States Department of Education floated the idea that The Biden Administration may extend the student debt repayment pause that has been in effect since March, 2020.
Your student loan payments are currently set to resume on February 1, 2022. Many Americans are not ready.
The latest extension may be announced later this week. I can’t confirm this, however, if they weren’t going to do it … I don’t think they would tease Americans during these challenging times.
Parent and Student loan borrowers have been helped by this pause; where no payments are required and no interest is mounting.
This has helped more than 43 million Americans who have student loan debt.
Before the pause, 1/3 of student loans were in default. There is currently $ 1.7 trillion in federal school loan debt on the books.
In August, 2021, The Biden Administration extended the payment pause through January 31, 2022.
The pause began under President Trump and have continued under President Biden.
''Since day one of the Biden Administration, we've been hard at work delivering meaningful relief to student loan borrowers,'' a spokesman for the Department of Education told CNBC on Tuesday. ''That started with an extension of the pause on federal student loan repayment until Jan. 31, 2022. Later this week, we will be announcing whether to extend the pause further.''
Parent and student debt holders were allowed to postpone their payments without getting charged added interest during the pandemic, according to the Federal Student Aid website.
The average monthly payment is $ 400, however, millions of Americans have regular monthly payments of between $ 1,000 to $ $ 2,500 per-month.
The breathing room given during the pandemic has been a lifesaver for millions who can’t afford to pay their student loan debt.
The Biden Administration has been struggling with trying to forgive the parent and student loan debt altogether. But, they do have the authority to put a hold on any payments being required to be made.
The debt repayment pause only covers federal student loans, not student loans that have been financed privately.
SOURCE: United States Department of Education and CNBC.
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