One Last Gift for the New Year: No Student Loan Payments

If the past year has demonstrated anything, it is that everything is subject to change. A week or so ago, we were planning on starting off this new year with tips and advice on how to prepare to resume federal student loan payments. Now—not so much. As most of us were rushing trying to purchase the last of our holiday gifts, the federal government came up with a last-minute present of its own: The moratorium on federal student loan repayment, initially set to expire on January 31 of 2022, was extended to April 30.

For many, this comes as mixed news. On one hand, it is a relief to be free of the worry that comes along with an additional expense every month. On the other, it comes with the acknowledgment that most Americans are still living with the financial and other hardships caused by this global pandemic. Despite the initial hope provided by the wide availability of vaccines, COVID-19 is far from over.

Payment Moratorium and Public Service Loan Forgiveness

The good news is that, for anyone working in a qualifying job, these additional months—February through April of 2022—still count toward PSLF. Additionally, anyone who would prefer to make payments on loans is permitted to do so, while the loans themselves will garner no interest for the duration of the moratorium. Since this is an extension of the existing forbearance, borrowers need not do anything in order to benefit from it.

Physicist Marie Curie once said, “Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.” In this time of uncertainty, we thank our doctors and nurses, our researchers and scientists, and all who work on the front lines of this pandemic, for all the work they do. We will continue to stand with science and with scientists, knowing that truth ultimately drives out fear. And we will be here to report on what you need to know about student loans, so that you can go back to fighting this fight—and winning.