Everything you need to know during this forgiveness period for student loans
President Biden opted to prolong the current moratorium until December 31, 2022, even though federal student loan payments were set to resume after August 31.
Instead of only paying interest if you make payments during the pause, your debt will be reduced. The current student loan payment moratorium, which has been in effect since March 2020, has been "one final time" extended through December 31, 2022, according to President Joe Biden.
That gives the 45 million Americans who still owe money on federal student loans some further breathing room.
You might still want to think about starting afresh or keeping up your payments, though. If you can afford it, paying off your debt when there isn't any interest accruing is a wise move.
It is particularly relevant in light of the fact that only debtors with incomes under $125,000 were qualified for Biden's $10,000 debt forgiveness.
The average student loan debt is about $37,000, and nearly 2.1 million Americans have loans of more than $100,000, according to Federal Student Aid Statistics.
President Biden opted to prolong the current moratorium until December 31, 2022, even though federal student loan payments were set to resume after August 31.
Instead of only paying interest if you make payments during the pause, your debt will be reduced. The current student loan payment moratorium, which has been in effect since March 2020, has been "one final time" extended through December 31, 2022, according to President Joe Biden.
That gives the 45 million Americans who still owe money on federal student loans some further breathing room.
You might still want to think about starting afresh or keeping up your payments, though. If you can afford it, paying off your debt when there isn't any interest accruing is a wise move.
It is particularly relevant in light of the fact that only debtors with incomes under $125,000 were qualified for Biden's $10,000 debt forgiveness.
The average student loan debt is about $37,000, and nearly 2.1 million Americans have loans of more than $100,000, according to Federal Student Aid Statistics.