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The student loan payment freeze has been extended seven times since March 2020, with each extension issued for economic reasons related to the COVID-19 pandemic. “While the economy continues to improve, COVID cases remain at an elevated level, and the President has made clear that pandemic-related relief should be phased out responsibly so that people do not suffer unnecessary financial harm,” read the press release. With broad student loan forgiveness announced at the same time, it’s possible that servicers will also need time to process significant changes in borrowers’ balances and, in some cases, the complete forgiveness of borrowers’ loans. Will there be another extension
At this point, it doesn’t look likely that the Education Department will extend the forbearance period for the eighth time, especially due to the mass forgiveness measure. While another extension is not impossible, federal student loan borrowers should prepare to resume making regularly scheduled payments in January and be on the lookout for the forgiveness application that’s expected to be . You’ll receive a billing statement from your loan servicer at least 21 days before your first payment is due, and you may receive additional communication about the end of the forbearance period before that. You can use these final few months of the payment pause to make interest-free payments, focus on private student loan payments or pay down high-interest debt, like credit card debt. However, if you’re concerned about making payments again in January, you have options. If you’re looking for a lower monthly payment, consider enrolling in an or – which has its eligibility requirements through Oct. 31 – or apply for if you don’t have the resources to start up payments. You can also think about with a private lender if you can get a lower interest rate and you aren’t worried about . SHARE: Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans. Related Articles