Posted on

As the Student Loan Payment Pause Ends, Here’s What to Know


After a three-year break, student loan payments are about to come due again.The payment pause on federal loans has been extended eight times since March 2020 as part of a pandemic relief measure.This time, however, the big restart has been written into legislation: As part of the agreement between President Biden and Speaker Kevin McCarthy to raise the debt ceiling, the pause button would be released “60 days after June 30,” or around Sept. 1. That isn’t much different from the timeline that Mr. Biden previously laid out, but codifying it may give him less leeway to extend the pause yet again.The payment break has provided relief for roughly 27 million borrowers and another seven million in default, who received a reprieve from wage garnishment and other collection efforts. Interest had also stopped accruing during that time.Your finances may look completely different from what they were three years ago, which is why borrowers should …

Read More