Student Loan Payments Restarting…Maybe?
As of today, the US Department of Education is still expecting student loan payments (paused by the COVID-19 pandemic) to resume on May 1, 2022. Many are taking to social media in an effort to extend the payment pause. Unfortunately, we are still unsure how successful those efforts will be. As we near the deadline, less than a month away, expect to hear more and more in the media regarding the extension of the pause.
Many have used the student loan pause to help them reduce other debts, save for large purchases, or just to help make ends meet. While these have been great for many individuals, many feel that the end of the road has come. I can’t say one way or another what will happen in the coming months, but I can help you navigate the confusion!
What can you do?
For those of you with student loan payments soon to resume, make sure you use the tools available to you. Some of those are as follows:
- Contact your student loan servicer to check the official start date and amount your payments will be once payments resume.
- See if you qualify for an income-driven repayment plan. These plans allow you to pay based on your income and often help payments become more affordable.
- Consolidate your loans. Often, students end up with multiple loans from multiple servicers. Consolidating the loans helps one better manage their debt with one payment per month instead of several.
- If you teach or work for a charitable organization or other qualifying employer, you may want to explore loan forgiveness options. The two biggest are:
No matter what the future holds, be aware that the student loan landscape is a continually changing world with many scams and fraudulent companies out there trying to make a quick buck. If you are ever concerned you may be the victim of a scam, please feel free to contact us for advice, or you can report scams directly to the US Department of Education Feedback Center.