The pause on repaying federal student loans ends in May. How should borrowers prepare?
Millions of borrowers took advantage of the pandemic’s pause on federal student-loan repayment, put in place by the CARES Act two years ago and extended by President Biden until May 1st. What happens when that pause ends?
Danielle Douglas-Gabriel covers the economics of higher education for The Washington Post. She warns that the return to repayment may be bumpy.
And Sean McEvoy, Maryland’s student loan ombudsman, outlines the rights borrowers are entitled to and offers advice on spotting student-loan forgiveness scams.
From the public service loan forgiveness homepage - "Most of the PSLF qualifying payment rules have been suspended through October 31, 2022. Under this temporary waiver, you may get credit for payments you’ve made on loans that would not normally qualify for PSLF. These payments will count even if you didn’t pay the full amount or on-time. However, only payments made after Oct. 1, 2007 can count as qualifying payments."
Find the PSLF Help Tool here.
This program originally aired January 20, 2022.