Student loan repayments have been paused for another 90 days to May 2022. Here’s how to think about your options.
Though the last student loan extension was supposed to be final, the student loan pause has been extended once again by 90 days to May 1 2022 offering more “breathing room” for those with student loans. The pause includes repayments, interest and collections according to the Department of Education, though further details are coming. The pause is not expected to impact progress to Public Service Loan Forgiveness (PSLF). Though the student loan freeze deadline has been extended in the past, payments do seem likely to resume in 2022 because the unemployment rate is now 4.2% marking a significant and rapid rebound from the covid-driven unemployment spike. Though the growth of the omicron variant in the U.S. may increase uncertainty, and this is generally a politically popular policy that both the Trump and Biden administrations have supported. Generally, getting out of high-cost debt is an important step on the ladder to starting saving and building wealth. However, student debt is typically relatively low interest similar to a lot of mortgage debt and can be quite flexible.
