Federal student loan debt payments suspended until August – NBC 6 South Florida

The Biden administration has announced that the student loan payment suspension in place since 2020 is being extended again.

That means millions of people who have federal student loans don’t have to start their payments again until September.

In addition to the suspension of student loan debt payments, the loans bear no interest. Interest is 0% and collections on defaulted loans are stopped.

This is an extended pause on payments and interest and people are still responsible for what they owe. It is not loan forgiveness.

“There was talk when Biden first showed up about canceling student loans,” said Craig Kirsner of Stuart Estate Planning. “Since then, there has been no progress on this. If you are not repaying your student loans in the hope that the government or Congress will cancel those loans, it is, at this point, very unlikely that this will happen. happen.

If you are able to make payments, you should do so, so you can reduce what you owe before interest starts again.

If you’re wondering what your payment will be after the break is over, the Department of Education says on its website that some people may see their payment amount change.

So check with the company servicing your loan to get a better idea of ​​what you might be facing if the break isn’t extended beyond August.

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