“When do student loan payments resume?” you may be nervously wondering. The end of the administrative forbearance for federal student loans in the U.S. is looming closer and closer; it is scheduled to end on September 30, 2021. In short, student loan payments are set to start on February 1, 2022
Why will student loan payments resume soon? What can you do to prepare for the student loan payment restart?
The pandemic has been challenging in financial terms for you and for a large portion of the U.S. population.
Nevertheless, one crucial advantage that the pandemic has caused you and 35 million other borrowers is the administrative forbearance period from the U.S. government for federal student loans and privately held FFEL loans in default.
Beginning from last March 2020 up to now, the payments for these loans have been temporarily suspended. As a result, borrowers like you did not need to make payments for the meantime. Interest charges and various collection activities were paused as well during that period.
The administrative forbearance, which was launched by the CARES Act, was a major relief to borrowers. However, all good things come to an end, and administrative forbearance is one of them.
The approaching conclusion of the administrative forbearance is mainly caused by the improvement in the U.S. economy due to the growth of the employment rate and the rise of vaccination rates.
Here are some ways you can get ready for student loan payments restarting in February of the new year.
First, you should keep your contact details updated with the Federal Student Aid. This way, the Federal Student Aid will be able to successfully send you your billing statement 21 days before the due date of your next payment. By receiving timely information, you will not be too surprised about the details of your payment responsibilities.
Next, you must keep abreast of the latest news regarding the restarting of student loan payments. Check out the Federal Student Aid website and your loan provider’s website on a regular basis for current updates.
If you are not sure if you are financially capable of restarting student loan payments in October, there are available options that can help alleviate your situation. You can apply to one or more of these programs which you are qualified for.
Loan forgiveness means that you are no longer required to make payments on your student loan because of the nature of your job.
Aside from the administrative forbearance period as emergency relief, the federal government also provides the option for general forbearance if you cannot afford to make payments on your loans because of financial challenges, medical expenses, etc.
You may potentially qualify for the Nursing Education Loan Repayment Program if you are a licensed registered nurse or nurse faculty with complete training. This is a special program that assists registered nurses in the repayment of student loans in exchange for nursing services in certain facilities where there is currently a lack of nurses.
Aside from the programs mentioned above, there are also other strategies that can help you reduce or eliminate your loan payments. These include applying income-driven repayment plans, refinancing programs, etc.
As February 1, 2022 approaches and restarting student loan payments is close to becoming a reality, make sure to keep reading student loan articles like this to explore all your student loan payment options.