Stressing about having to resume student loan payments? Take a breath because now you have more time to prepare. The U.S. Department of Education (Department) announced an extension of the pause on student loan repayment, interest, and collections through August 31, 2022. While the economy continues to improve and COVID cases continue to decline, President Biden has made clear the continuing need to respond to the pandemic and its economic consequences, as well as to allow for the responsible phase-down of pandemic relief.
This extension is intended to provide additional time for borrowers to plan for the resumption of payments, reducing the risk of delinquency and defaults after restart. The Department will continue to assess the financial impacts of the pandemic on student loan borrowers and to prepare to smoothly transition borrowers back into repayment. The Department will also continue to provide loan relief, including to borrowers who have been defrauded by their institutions and those eligible for relief through the Public Service Loan Forgiveness program. FSA will establish new partnerships to ensure that borrowers working in public service are automatically credited with progress toward forgiveness, eliminating paperwork that prevents many borrowers from getting help. FSA will also continue to transfer loans to servicers committed to working under new, stronger accountability rules.
If you’re stressed about more than just student debt and struggling financially, give us a call at 816-524-4949 or click here to schedule a consultation to determine your options.