Spotlight on Student Loans:
Biden to Extend Student Loan Moratorium through August
Hallelujah! You wanted it, you wished for it, you asked for it, and now here it is: student loan payments will remain on hold until this fall! After weeks of signaling that a further extension of the payment moratorium could be coming, the Biden Administration is expected to announce today that repayment will remain frozen until August 31st.
Is this the last student loan payment extension?
When officials extended the payment moratorium the last time, they indicated that they wanted it to be the final extension. With continued high inflation and pressures caused by the war in Ukraine, the President will let student loan borrowers hold on to more cash in their pocket while the Administration tries to sort out the economy. Some economists have argued that this could be contributing to inflation, which means we can expect future battles on Capitol Hill about student loan forgiveness and cancellation.
What should I do with this newest moratorium extension?
If you were dreading getting ready to resume your student loan payments in May, you have more of a reprieve. You can use this time, however, to make plans for making payments in the fall. If you’re not sure what to do, we have some advice to prepare yourself. If you’ve already gone through the effort to get ready to resume payments, you’re in a good place for when they do in September. Enjoy the extra cash you were expecting to pay, and consider saving it towards something nice for yourself!
If you’re pursuing Public Service Loan Forgiveness and you haven’t met with us yet, schedule your free 15-minute Discovery Session to find out if you qualify for PSLF, or what you can do if you don’t.