When Do Student Loans Resume: A Complete Guide
As a student, figuring out how to pay for college can be stressful enough without having to worry about when student loans will resume. With the COVID-19 pandemic affecting so many aspects of life, including education, many students and their families have been left wondering when they will need to start repaying their loans. In this guide, we’ll take a closer look at the question, “When do student loans resume?” and provide you with all the information you need to know.
Find out when student loans will resume in this comprehensive guide. Learn about the impact of COVID-19 on student loan repayment and get answers to frequently asked questions.
Introduction
For many students, the cost of attending college is simply too high to cover without taking out student loans. However, these loans come with a repayment obligation that can last for years after graduation. The COVID-19 pandemic has caused significant disruption to education and has left many students wondering when they will need to start paying back their loans. If you’re in this situation, don’t worry – we’ve got you covered.
When Do Student Loans Resume?
The short answer to this question is that it depends. Student loans typically go into repayment six months after you graduate or drop below half-time enrollment. However, during the COVID-19 pandemic, the government implemented a number of measures to provide relief to borrowers. These measures included suspending payments, waiving interest, and halting collections on defaulted loans.
The latest update from the U.S. Department of Education is that federal student loan payments are set to resume on October 1, 2021. This means that borrowers will need to start making payments again, and interest will begin accruing once more. If you’re not sure when your payments will resume, it’s a good idea to check with your loan servicer.
Impact of COVID-19 on Student Loan Repayment
The COVID-19 pandemic has had a significant impact on student loan repayment. With many people losing their jobs or experiencing reduced income, making student loan payments became much more difficult. In response, the government implemented a number of measures to provide relief to borrowers.
One of the most significant measures was the suspension of payments on federal student loans. This meant that borrowers didn’t have to make payments, and interest wasn’t accruing during this time. In addition, collections on defaulted loans were also halted, and wage garnishments and tax refund offsets were suspended.
These measures were originally set to expire on September 30, 2020, but were extended multiple times due to the ongoing pandemic. The latest extension is set to expire on September 30, 2021, which means that borrowers will need to resume payments on October 1, 2021.
FAQs
Q1. When do student loans resume?
Federal student loan payments are set to resume on October 1, 2021.
Q2. Will interest start accruing again when student loan payments resume?
Yes, interest will begin accruing again once payments resume.
Q3. Do I have to start making payments on my student loans even if I’m still experiencing financial hardship due to the pandemic?
If you’re still experiencing financial hardship due to the pandemic, you may be eligible for additional relief options, such as income-driven repayment plans or loan deferment or forbearance. Contact your loan servicer for more information.
Q4. What happens if I don’t resume making payments on my student loans?
If you don’t resume making payments on your student loans when they resume, you could face consequences such as late fees, damage to your credit score, and even wage garnishment or legal action.
Q5. Will private student loans also resume on October 1, 2021?
Private student loans are not subject to the same regulations as federal student loans. Each lender may have different policies, so it’s important to check with your lender to find out when your payments will resume.
Q6. Can I still apply for student loan forgiveness or discharge during the pandemic?
Yes, you can still apply for student loan forgiveness or discharge during the pandemic. However, the pandemic may impact the processing time of your application. Contact your loan servicer or the Department of Education for more information.
Conclusion
If you’re a student or recent graduate with student loan debt, the question of when student loans will resume is likely on your mind. The good news is that federal student loan payments are set to resume on October 1, 2021, which means that you’ll have a clearer idea of what your repayment obligations are. However, it’s important to be proactive about your student loan repayment, especially if you’re experiencing financial hardship. Contact your loan servicer to discuss your options and make a plan that works for you.
Remember, student loan debt can be overwhelming, but there are resources available to help you manage it. By staying informed and taking advantage of the available options, you can take control of your student loan repayment and work towards a debt-free future.