The Student Loan Payment Deferrals Have Been Extended Until October. Here’s What That Means.

If you have student loans listen up!!

President Biden has officially passed a bill that is immediately extending student loan payment deferrals. Here’s what that means for you…

Just like last year, if you have student loan payments but are unable to pay them, you won’t need to make any payments until October of this year!

Borrowers will not have to make payments until October 1 at the earliest, extending the already unprecedented pause on payments by eight months.

In addition, during this time, interest has been stopped meaning that your current student loans will not accrue interest whether you make a payment on them or not.

So, how do you ensure your student loans qualify?

If your student loans are FEDERALLY funded, both the pause on payments and interest waiver is automatic.

In fact, I logged into my student loan servicer account and saw this message today:

As you can see above, my student loans have automatically been deffered through September 30, 2021.

This is separate from the plans that President Biden has for cancelling up to $10,000 in student loans for borrowers. That is still in the works.

As of right now, you may continue making payments to further pay down the principle on your student loans OR you may pause payments and use that money elsewhere.