Apr 14, 2022 Student Loan Update
President Biden extended the student loan moratorium to August 31, 2022. This is the seventh extension and gives the over 43 million student loan borrowers a little more time to push off repayment of their loans without accruing any interest.
While this is a short extension, there has been talk of extending into 2023. Borrowers still need to be ready to restart payments if there is no further extension.
According to the latest department data, 500,000 federal student loan borrowers – out of more than 43 million – have been repaying their loans during the pause.
Resetting Borrowers to Good Standing
The U.S. Department of Education also unveiled a plan to reset the roughly 7 million borrowers in default, using the pandemic pause to restore their accounts to good standing. This may provide some challenges as they are missing many borrowers’ email addresses. They will try to reach these default borrowers through the most recent contact information or social media campaigns.
For additional details on how they plan to reset borrowers to good standing, you can read more here: https://www.npr.org/2022/04/06/1091018301/student-loan-pause-extended
Cancellation of Student Loan Debt
While student loan cancellation debt has been discussed, there has been no recent talk about canceling the debt. We recommend repaying your student loans or using one of the forgiveness programs built into your long-term plan.
If you have questions about repaying your student loans, please reach out to your advisor to review your overall plan.
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