Your student loan repayments are due again as of October 1, 2021.
Here’s what you need to know – and what it means for your student loans.
If President Joe Biden does not extend student loan relief – which includes the temporary forbearance of student loans for federal student loans – then your student loan payments will be due again as of October 1, 2021. your head at about the end of the payment break for your student loans. Here are the answers to 10 common questions:
1. Are my federal student loan payments due on October 1, 2021?
If Biden doesn’t extend student loan relief, September 30 would be the last day. This means that student loan payments would resume on October 1, 2021, but that is not necessarily when student loan payments are due. Your specific due date for your student loans is between you and your student loan manager.
2. What is the interest rate on my student loans when student loan payments start again?
When student loan repayments restart, your interest rate should be the same as you had in March 2020 when the temporary student loan forbearance began due to the Covid-19 pandemic. During the Covid-19 pandemic, no new interest has accrued on your federal student loans. In fact, the interest rates on your federal student loans were 0% during this period. If you think there is a problem with your interest rate, contact your student loan manager.
3. I have student loans with variable interest rates. Won’t my interest rate change from October 1?
All federal student loans are student loans with a fixed interest rate. If you have a variable rate student loan, it is a private student loan. Private student loans are not covered by the temporary forbearance of student loans due to the Covid-19 pandemic. That being said, the variable interest rate on your private student loan can change.
4. Will I still have the same student loan manager?
Most student loan borrowers will have the same student loan manager as before the Covid-19 pandemic. If your student loan had been sold or transferred, you would have received correspondence from your former student loan manager.
5. How can I contact my student loan officer?
Contact your student loan manager at any time. You don’t have to wait for student loan payments to start again.
6. How will I know if student loan payments will resume after September 30, 2021?
If the payment break expires as scheduled on September 30, 2021, the US Department of Education will contact you in writing to notify you that regular federal student loan payments will resume.
7. Should I change my income-based repayment plan?
If you’ve signed up for an income-based repayment plan for your federal student loans, now is the time to review your current student loan repayment plan. There are four main income-based repayment plans: IBR, PAYE, REPAYE, and ICR. This is also a good time to update your income and family information. As a result of the Covid-19 pandemic, your income, marital status, or family size may have changed. Make sure to update this information as it could affect your student loan payments. This is also a good time to update your contact details and banking information for automatic payment, if there have been any changes. Contact your student loan manager for more details.
8. I have not made any federal student loan repayments since March 2020. Do I get credit for the cancellation of the student loan?
Yes, one of the great benefits for student loan borrowers is that you will get âcreditâ for federal student loan repayments during the Covid-19 pandemic, even if you haven’t made any. This is useful for anyone who wants to get a student loan forgiveness through an income-based repayment plan after 20 or 25 years, or a student loan cancellation through the public service loan forgiveness program. In practice, you will get a âcreditâ for making a student loan payment each month from March 2020 through September 2021, even if no student loan payment has been made. This is especially useful for student loan borrowers who request a utility loan forgiveness, which requires 120 monthly federal student loan payments.
9. Will Biden extend the student loan payment hiatus beyond September 30?
Biden may extend student loan relief beyond September 30, 2021, even if unemployment benefits and the moratorium on evictions end. Improved unemployment benefits and the moratorium on evictions are two other popular financial aid programs for those struggling financially during the Covid-19 pandemic. The federal government has chosen not to extend any of these programs. However, there is no guarantee that the student loan relief will be extended. For example, Biden may extend student loan relief beyond September 30, but there is a major dilemma. Senator Elizabeth Warren and other members of Congress as well as officials from the US Department of Education have called on the president to extend student loan relief to at least early 2022. However, Biden or the Secretary of Education Education Miguel Cardona did not say if there is any extension.
10. Will my student loans be canceled?
Some student loan borrowers believe it is possible for student loans to be canceled, while others say student loan cancellation has been canceled. Biden has now canceled nearly $ 3 billion in student loans since becoming president. This includes the cancellation of student loans of $ 1 billion in student loans for 72,000 student loan borrowers. Biden canceled an additional $ 1.3 billion in student loans for 41,000 totally and permanently disabled borrowers. Biden also wrote off $ 500 million in student loan debt for 18,000 student loan borrowers under the Borrowers Against Student Loan Defense rule. Last week, Biden also canceled $ 55.6 million in student loans, meaning Biden canceled $ 1.5 billion in student loans this way. Cancellation of student loans and temporary forbearance of student loans are separate matters. Biden administration is considering student loan cancellation, but any decision on large-scale student loan cancellation will not affect the extension of temporary student loan relief (which relates to student loan payments) . It is possible that both or neither will occur.
There is no guarantee anyway if the student loan relief will be extended. Either way, make sure you are financially and strategically ready to repay your student loan. Here are some popular options for saving money: