Student loan payments have been paused since March 2020, part of federal pandemic relief signed into law. There hasn’t been guidance on when, or if, payments will restart.
The clock is ticking … student loan payments are set to restart in a month. Be ready and see where things stand.
TO SUM IT UP
- President Joe Biden is planning to announce a student loan forgiveness program by the end of the month. That’s when the current payment pause is up.
- One possibility: $10,000 in relief for some borrowers.
- Some advocates say that it doesn’t go far enough and are concerned with the lack of details so far.
THE BACKGROUND
- Student loan payments have been paused since March 2020, part of federal pandemic relief signed into law by former President Donald Trump and extended by Biden.
- There hasn’t been guidance on when, or if, payments will restart.
- It’s reported that Biden will give borrowers making under $150,000 about $10,000 in relief. But his administration has been mostly quiet on specifics.
WHAT’S HAPPENING
- Experts say the pause will likely be extended for a seventh time.
- Why? Those reasons cover the midterm elections, rising inflation and lack of communication from loan servicers.
- Still, canceling the debt does not attack the rising cost of higher education.
WHY IT MATTERS
- The millions of Americans burdened with student loans hold more than $1.7 trillion in debt. Most of that is federal.
- A 2022 study found that most Gen Z and millennial borrowers delayed a major financial decision — such as buying a house — thanks to their student loan debt.
- 59% of graduates with debt said higher education improved their opportunities in the workplace. 10% said they regretted it.
SOURCES
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