For those of us hoping for another extension for federal student loans--its not going to happen.
Due to the Coronavirus pandemic, In March of 2020 federal student loan payments were put on pause and interest rates were set at zero.
In August, the Biden administration issued one more "final extension" of the federal student loan payment pause to January 31, 2022.
On Monday the Biden Administration, announced in February 2022, millions of borrowers will have to start repaying their loans once again.
More than 42 million people had federal student loans of some form as of fall 2021, amounting to nearly $1.6 trillion in student loan debt, according to Education Department data.
Borrowers facing financial challenges and concerned they cannot afford the monthly payments when they kick back in may have several options available to them.
For those with federal student loans, there is an economic hardship deferment as well as an unemployment deferment option.
There is also forbearance.
Each of these have a three-year limit, but in nearly all cases, borrowers will still incur interest.
Those whose incomes are lower now than before the pandemic may be eligible for lower payments by enrolling in an income-driven repayment plan. To do this, borrowers need to fill out an application — and borrowers who are new to receiving an income-based plan as well as those who need to recertify their income information to update their current circumstances will have to fill one out. Payments under one of these plans can be as little as $0 a month.
To check you student loan assistance eligibility, click here