In the last year and a half, we have seen a myriad of stimulus and relief packages designed to help Americans manage the economic consequences of the pandemic. This relief has come in the form of stimulus checks, an eviction moratorium, tax credits, PPP loans and student loan relief. Each of these initiatives have their own start and stop dates, increasing the importance of tracking the initiatives that can help you.
Most recently, the Department of Education announced the student loan interest and payment moratorium has been extended from September 30st 2021 to January 31st 2022. This announcement means millions of borrowers have several more months of not having to make payments or accrue interest on these loans. A recent poll stated that two-thirds (67%) of borrowers responding to a survey this spring said it would be difficult for them to afford payments if they resumed the following month.
The US Education Secretary has called this the “final extension” to alert borrowers to get ready for this moratorium to end. Borrowers are highly encouraged to begin to get in contact with their lenders to determine what their payments will be once the moratorium ends. A time of no interest and no payments is a financial opportunity for the borrower. Here are some thoughts on what to do to put you in the best position before the relief period ends.