The Good News About Student Loans

 

Let's face it, student loans are annoying! I totally get it. If you were lucky enough to never have to deal with them, good for you! That's awesome. Unfortunately, that isn't the case for many students. Student loan debt has been reported to be in the billions and rising steadily 😔. 

It's going on two years now that we've been dealing with this awful pandemic. It's been a tough time for the world. Some are doing better than others, but we cannot deny that it's been rough. On top of that, businesses have been impacted which may have even reached your pockets. Dealing with all of the crazy on top of staying current on your bills may be challenging. A student loan is likely a bill you'd like to forget and maybe one day have forgiven 🤞, and while that's not completely the case, many are getting a little break.

Some relief continues to be available for those with student loans. During the pandemic, there have been extensions provided for student loan borrowers. While the last extension was due to end on January 31, 2022, there's been a third extension for another 90 days.  This means borrowers now have until May 1, 2022, until they'll need to begin making payments again.

What does this mean for me?

For eligible loans, this student loan payment pause means that you wouldn't have to make any payments, 0% interest rate 👏,  and a pause in collections for defaulted loans. 

How do I know if I'm eligible? 

If you have an eligible loan, the good news is you don't have to do anything. The loan payments will automatically pause at a 0% interest rate. Most likely this has already occurred if you have had a loan from the beginning of this whole ordeal, this emergency relief just extends your pause period beyond the original date. 

👀Visit this page for more information. 

What should I do?

Having this relief is a good thing. It gives you more money to direct towards other bills or needs. It's also an opportunity to build up an emergency fund if you don't already have one or to rebuild one that you had to tap into. The idea here is not to buy things that will cost you in the long run, remember student loan payments will resume and you don't want to fall short because you've added another expense to your budget. Use this time wisely, build up your reserves, and fully take advantage of the pause. 😉

✨Managing Money Like a Boss is about being wise and taking advantage of opportunities that come your way. It's not every day that you get a break from paying student loans. Enjoy the break, but be smart! ✨

Learn More:

COVID-19 Emergency Relief and Federal Student Aid

Preparing for Repayment to Resume