Your Student Loan Repayment, Interest, and Collections Will Remained Paused through August 31, 2022
On April 6, the Department of Education (Department) extended the deadline for the student loan relief program established under the CARES Act to August 31, 2022, giving Federal student loan borrowers additional relief.
President Biden’s administration extended the pause to reduce the risk of delinquencies and defaults as the country faces continued economic instability.
You Should Still Have a Repayment Transition Plan In Place
80 percent of student loan borrowers have made little to no progress paying down their debt during the repayment pause. According to New York Fed data, only 5 percent of borrowers paid down more than $5,000 in the last two years.
Extra Payments During the Pause Save You More Money
The repayment pause includes a 0% interest rate, meaning payments you make can be applied entirely to your principal balance. If you’re able to, making payments during the repayment pause can help you pay down your loans sooner and save you money over time.
You Can Still Apply for Public Service Loan Forgiveness (PSLF)
Borrowers working in public service have until October 31, 2022 to apply for a limited PSLF waiver. The Department has revamped the PSLF program, and your previous payments may qualify for loan forgiveness. Contact an IonTuition counselor or visit StudentAid.gov/PSLF for more information and to see if you qualify.
You Can Enroll into a New Repayment Plan
If you are unemployed, or if your income has been reduced, consider enrolling into an income-based repayment plan. Your payments can only be reduced and it’s now much easier to certify your income. An IonTuition concierge advisor can help you enroll and even be on the phone with you while you speak with your student loan servicer.
Contact your IonTuition concierge advisor today to make sure you’re ready whenever repayment actually resumes.