President Biden has announced an extension of the ongoing federal student loan payment pause to May 1st, 2022. This move will affect many student loan borrowers, considering the $1.5 trillion owed in student loans across the country.
If you’re wondering how the new student loan extension will impact your finances, read on to learn the key takeaways from President Biden’s announcement summarized by debt resolution experts, Resolvly LLC.
The New Student Loan Extension Comes As A Surprise To Many
As the initial deadline for the student loan payment pause (January 31st, 2022) was approaching, America was waiting to hear what President Biden’s plans would be moving forward. If you have student loans, you’re likely one of the millions who wanted to know what you could expect for 2022.
Initially, President Biden claimed he would not extend the student loan payment pause. You may have received emails and phone calls from the Department of Education reminding you that your student loan payments would soon be due. Perhaps you even began to make payments or arranged to put a payment plan in place.
The Biden administration took notable measures to tell American student loan borrowers that they should not expect an extension on the moratorium for payments. Still, it all changed when he announced the adjusted May 1st deadline.
This might mean more money in your pocket during the first half of 2022 if you were budgeting to pay for your student loans.
Is This The Final Extension? We Aren’t Sure
As we mentioned above, the Biden Administration told Americans that the January 31st student loan payment pause extension would be the last. But so far, we haven’t heard the same sentiment regarding the May 1st deadline.
In fact, Biden did not even mention the possibility of another student loan extension (or not) in his announcement. Many took note of this omission and have been analyzing it since.
This could be an indicator that the Biden administration understands the worldwide pandemic may present more forthcoming challenges that could warrant another student loan extension. It seems they realize now that making claims or plans for months to years in the future may cause more confusion in uncertain times.
If paying your student loans has been challenging, President Biden’s new student loan payment pause may provide short-term relief. However, it’s best to plan for the future, as it’s unclear now when payment periods will resume.
If your student loans don’t qualify for the federal government’s temporary relief and you’re struggling to make payments, consider contacting a professional who can help. Resolvly can assist with that.
At Resolvly LLC, we connect clients with the top consumer protection lawyers in the country to help find solutions for unsecured debt. Contact us today to schedule your free consultation and learn more about how we can help you find financial freedom.