WASHINGTON (WDVM) — The White House announced the current moratorium on federal student loan payments would be extended one final time but many people still have questions regarding what to expect after the last round of relief.
The payment pause was set to expire in just a few weeks, but now people can expect to resume their student loan payments in February of 2022.
During this payment pause on federal loans, all student loan payments are suspended, interest is suspended, and the time still counts towards forgiveness programs, but experts say this pause is a great time to financially prepare.
Experts say people should begin understanding the type of loans they have, and research what programs are available.
“If you are paying student loans, you can pay down the principal right now so it’s a great opportunity for those to pay down the actual principal without interest. So if you could find the money in your budget to do so it’s a great opportunity,” said Leslie Tayne, Financial Attorney.
However, if you can’t make payments even after the pause there are other options, such as an income-driven program, forgiveness program, or potentially continued deferment or forbearance of the loans.
Experts say speak to your loan servicer to ensure you have all the right information. Also, keep in mind the extension applies to federal student loans, not private student loans.