WINOOSKI, Vt. (WFFF) — The Biden Administration has extended a moratorium on federal student loan payments through January, allowing for borrowers to prepare, according to the Department of Education.
But how should they?
Scott Giles, president of the Vermont Student Assistance Corporation (VSAC), said borrowers will want to get a good grasp on their debt situation, as well as the tools that can help keep payments low. He said payment programs are available for some borrowers that will allow them to continue the pause. “A borrower who is really struggling or worrying about this should reach out, either to their servicer or VSAC for advice and counsel on how they can get into that program.”
On the flip side, if you’ve been doing well for yourself but still took advantage of not having to make payments, Giles said there’s good reason to get back in the habit before the moratorium is over.
“For those borrowers who continue to be able to work, they’ll be able to use the next five months, if they choose, to make payments,” Giles said. “It’s a period where there’s no interest, so it almost counts as a loan forgiveness for them.”