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Get Ready: Student Loan Payments Come Back for Real Feb. 1

1 40 44
07.08.2021

Federal student loan borrowers anticipating the return of their regular student loan payments Oct. 1 can once again breathe a sigh of relief: The pause will continue through Jan. 31, 2022, the Department of Education announced Friday.

The department says the extension — the fourth since March 2020 — will be the last. As with previous extensions, this forbearance does not apply to private student loans.

The move means that by Jan. 31, there will have been nearly two years of payment relief for federal student loan borrowers.

The forbearance began as part of the original coronavirus relief bill, known as the CARES Act. Borrowers received it automatically, and the interest rate on their balances was set at 0%. The pause gave student loan debtors time to deal with lost jobs, juggle finances to pay for food and shelter, or build up emergency savings.

In the Education Department’s announcement of this latest extension, Secretary of Education Miguel Cardona said the time for such measures is ending.

“As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment,”........

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