Why NYS College Students Are Happy to Hear This About Their Loans
Have you been dreading repaying your Federal Student Loans? Have you been able to save any money over the last few months, that you can then turn around and use on paying your debt down?
The official announcement has been made from the U.S. Department of Education that you don't have to repay your loan, just yet.
When do you need to start repaying your student loan?
The good news is that you will get some additional time before you need to resume making those loan payments. In fact, you will get until May 1, 2022.
Is there anything that you need to do to be a part of this loan payment reprieve?
No. You don't have to do anything and according to the Federal Trade Commission, if anyone offers to help you set this up and put it into motion, they are scammers.
Which type of student loans are eligible for this repayment reprieve?
While most Federal loans are eligible for this program, there are a few that are not. The FTC says that older Family Federal Education Loans (FFEL) and loans that are owned by the college that you went to are not eligible.
What is this 'pause on student loan repayments' called?
The official wording is called an administrative forbearance. A big phrase that means, you just don't have to make any payments during this time, through May 1, 2022.
What benefit would you have if you actually did make payments to your loan during this time?
If you think about going ahead and paying back some of your loans now, the kinda cool thing is that you would be paying back the loan at 0% interest and any payments you make now would be super beneficial towards actually paying off your debt.
Best of luck with your student loan repayment. I still remember the day that I sent that last payment. It was a glorious day indeed.