After 3-year pause, student loan payments expected to resume soon

It’s been three years since the student loan payments were frozen due to the pandemic, but the break is coming to an end soon. According to the US Department of Education, federal student loan payments are expected to resume in February 2022. This means that millions of Americans will have to start paying off their student debt soon. The halt on student loan repayments was introduced in March 2020 to provide some relief to borrowers during the pandemic. While it was a great relief for many, the resumption of payments will have a huge impact on many borrowers who may not be financially stable.

The scheduled repayment resumption will come at a time when the country is still battling the pandemic, and many people may not be prepared financially for the repayments. As a result, lawmakers are calling for the Biden administration to extend the pause on federal student loan repayments until the COVID-19 pandemic subsides.

The resumption of student loan payments will affect millions of people across America. In fact, statistics show that approximately 43 million borrowers owe a total of $1.6 trillion in federal student loans. This means that the resumption of payments could have far-reaching effects on the economy, especially for borrowers who are still trying to navigate their way through the pandemic’s financial impact.

In conclusion, the resumption of student loan payments after a three-year pause will have a massive impact on borrowers’ financial well-being, especially during these unstable times. The Biden administration is considering proposals to extend the pause on federal student loan payments until the COVID-19 pandemic’s economic effects diminish. Nevertheless, it is crucial to start preparing for the resumption of payments, making sure to explore all available financial options to avoid any default on the loans.