Student loan borrowers have enjoyed temporary student loan forbearance since March 2020 when Congress passed the Cares Act, which provided record student loan relief to more than 40 million student loan borrowers. This student loan relief included:
Each year, Congress adjusts the interest rates that are charged on federal student loans. The Federal Reserve is expected to raise interest rates at least three times this year and possibly four times. If the Federal Reserve raises interest rates, this means that student loans can become more expensive. (What higher interest rates mean for your student loans). Which student loans will be impacted? If you borrow new federal student loans this year, they may be more expensive if the Federal Reserve increases interest rates. If you have private student loans and have a variable interest rate, then your student loan interst rate may increase. The good news is that if you have a federal student loan now, any increase in interest rates will not impact your current federal student loan interest rate. Why? Federal student loans have fixed interest rates, so they will never change during the life of your student loan regardless if the Federal Reserve raises or cuts interest rates.
The most important change to student loans this year is the end of temporary student loan relief. Prepare now so you can access your options and choose the best strategy for student loan repayment for you. Here are some popular ways to pay off student loans faster: