The Biden administration announced the student loan payment pause that has been in place since 2020 is now being extended again.
This means that millions of people who have federal student loans don’t have to start up their payments again until September.
In addition to the suspension of student loan debt payments, the loans are not accruing interest. Interest is at 0 percent and collections on defaulted loans are stopped.
This is an extension of the pause on payments and interest and people are still on the hook for what they owe. This is not loan forgiveness.
“There was talk when Biden was first running about student loan forgiveness,” Craig Kirsner of Stuart Estate Planning said. “Since then, there has been no progress made on that. If you’re not paying your student loans in the hope that the government or Congress might forgive those loans it is, at this point, highly unlikely that will happen.”
If you are able to make payments, you should, so you can actually make a dent on what you owe before interest starts up again.
If you’re wondering about what your payment will be once the pause ends, the Department of Education says on its website that some people may see their payment amount change.
So check with the company that services your loan to get a better sense of what you may be facing if the pause is not extended beyond August.