Well, this is the news many have been waiting for!
President Biden has just extended the pause on student loan payments and that extension now goes until January 2022 which means repayments won’t happen until February 2022.
“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” U.S. Secretary of Education Miguel Cardona stated in a press release. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment.”
Many anticipated this would happen especially since the Delta variant is running rampant in the U.S. right now.
“Giving them a final time would help them make transition and give them time to prepare repayment,” the person added, explaining the “final extension” messaging of the statement.
So, this is supposed to be the final extension but who knows what is to come of the future.
Now, if you haven’t already, you should receive some sort of communication from your student loan servicer regarding this pause.
This will pause federal student loan payments and interest during this period. Meaning, you do not have to make payments on your student loans.
However, any payments you do choose to make, will count towards your principle balance.
The Education Department “will begin notifying borrowers about this final extension in the coming days,” the press release added, “and it will release resources and information about how to plan for payment restart as the end of the pause approaches.”