A Year Without Student-Loan Payments

For the more than 42 million borrowers with federal student loans, the Covid-19 pandemic brought unexpected relief: a break from payments. The pause on interest accumulation alone has saved borrowers roughly $4.8 billion a month, according to the Education Department.
Last March the department put most federal student-loan payments on hold and set interest rates to zero. One year and three stimulus bills later, the Biden administration extended the payment suspension and interest waiver until Sept. 30.
As a result, close to 20 million borrowers currently have their loans in forbearance, according to Mark Kantrowitz, author of “How to Appeal for More College Financial Aid.”
For Kim Stolow, a 41-year-old clinical therapist living in New Jersey, the pause came as she was struggling to handle reduced work and more child-care commitments.
“Mentally, it eased up the pressure,” she said. “Just one less thing to think about.”

Source link

error: Content is protected !!