When Does The Student Loan Pause End?

As the COVID-19 pandemic continues to impact the world, many students have been able to take advantage of the student loan pause. This temporary relief has allowed borrowers to pause their payments and provided some much-needed financial breathing room during…

As the COVID-19 pandemic continues to impact the world, many students have been able to take advantage of the student loan pause. This temporary relief has allowed borrowers to pause their payments and provided some much-needed financial breathing room during these uncertain times.

However, with the end of the pandemic nowhere in sight, many borrowers are wondering when the student loan pause will come to an end. In this article, we’ll explore the current state of the student loan pause, what borrowers can expect in the coming months, and what actions they can take to prepare for when payments resume.

When Does the Student Loan Pause End?

When Does the Student Loan Pause End?

The COVID-19 pandemic has brought about many changes in the way people live their lives. One of the major impacts of the pandemic has been on the education sector. With schools and universities shutting down, students were left with no other option but to switch to online classes. This has also affected the student loan sector, with many borrowers struggling to pay back their loans due to the pandemic. To help ease the burden, the government introduced a student loan pause. But when does this pause end? Let’s take a closer look.

What is the Student Loan Pause?


The student loan pause is a temporary relief measure introduced by the government to help borrowers who are struggling to pay back their loans during the pandemic. Under this measure, borrowers do not have to make any payments towards their federal student loans until September 30, 2021. This pause also includes the suspension of interest charges on these loans.

To be eligible for the student loan pause, borrowers must have federal student loans that are owned by the Department of Education. Private student loans are not eligible for this relief measure.

When Does the Student Loan Pause End?


The student loan pause is set to end on September 30, 2021. After this date, borrowers will be required to resume their monthly payments towards their federal student loans. This means that borrowers will have to make their first payment towards their loans in October 2021.

It is important to note that borrowers who have not made any payments towards their loans during the pause may have accrued interest on their loans. This interest will be added to the outstanding balance of the loan when the borrower resumes their payments. It is therefore advisable for borrowers to start making payments towards their loans as soon as possible to avoid accruing additional interest charges.

What are the Benefits of the Student Loan Pause?


The student loan pause has been a beneficial relief measure for many borrowers during the pandemic. It has provided them with some much-needed financial relief, especially for those who have lost their jobs or are facing financial difficulties due to the pandemic.

One of the main benefits of the student loan pause is the suspension of interest charges on the loans. This means that borrowers do not have to worry about accruing additional interest charges during the pause. This can help them save a significant amount of money in the long run.

Another benefit of the student loan pause is that it gives borrowers more time to focus on their other financial obligations, such as paying their rent or mortgage, buying groceries, and taking care of their families.

Student Loan Pause Vs. Student Loan Forgiveness


The student loan pause is a temporary relief measure that provides borrowers with some breathing room during the pandemic. However, it is important to note that this pause does not forgive the borrower’s debt. Once the pause ends, borrowers will be required to resume their monthly payments towards their loans.

On the other hand, student loan forgiveness is a permanent relief measure that cancels all or a portion of the borrower’s student loan debt. This measure is typically available to borrowers who work in certain public service professions, such as teaching or nursing.

It is important for borrowers to understand the difference between the student loan pause and student loan forgiveness, so that they can make informed decisions about their financial future.

Conclusion


The student loan pause has been a much-needed relief measure for many borrowers during the pandemic. It has provided them with some much-needed financial relief, especially for those who are facing financial difficulties due to the pandemic. However, it is important for borrowers to understand that this pause is temporary, and they will be required to resume their monthly payments towards their loans once the pause ends.

Borrowers who have not made any payments towards their loans during the pause may have accrued additional interest charges on their loans. It is therefore advisable for borrowers to start making payments towards their loans as soon as possible to avoid accruing additional interest charges.

Frequently Asked Questions

Here are some common questions and answers about the student loan pause:

1. How long has the student loan pause been in effect?

The student loan pause was put into effect on March 13, 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This meant that federal student loan payments were automatically suspended, and interest rates were set to 0%, until September 30, 2021.

However, the pause has been extended multiple times due to the ongoing COVID-19 pandemic, and it is currently set to expire on January 31, 2022. It is possible that it may be extended again, but borrowers should prepare to resume payments if it does not.

2. Will I have to make up missed payments once the pause ends?

No, you will not have to make up missed payments once the pause ends. The CARES Act specified that the suspended payments would count as if they had been made, so borrowers will not be penalized for not making payments during this time.

However, it is important to note that interest will start accruing again once the pause ends, so your loan balance may be higher than it was before the pause began.

3. What if I can’t afford my payments once the pause ends?

If you cannot afford your payments once the pause ends, there are several options available to you. You may be able to apply for an income-driven repayment plan, which can lower your monthly payments based on your income. You can also look into deferment or forbearance options, which allow you to temporarily postpone or reduce your payments.

It is important to contact your loan servicer as soon as possible if you are struggling to make payments, as they may be able to offer assistance or guidance on your options.

4. Will private student loans be affected by the pause?

No, the student loan pause only applies to federal student loans. Private student loans are not included in the CARES Act provisions, so borrowers with private loans will still be required to make payments as usual.

However, some private lenders may be offering their own relief options for borrowers affected by the pandemic. It is important to contact your lender to see if any options are available to you.

5. Can I still make payments on my federal student loans during the pause?

Yes, you can still make payments on your federal student loans during the pause if you choose to do so. While your payments are suspended, any payments you make will go directly towards paying down your principal balance, which can help reduce the amount of interest that accrues.

If you are able to make payments but are struggling to do so on your current plan, you may want to consider switching to an income-driven repayment plan or refinancing your loans to get a lower interest rate.

Pause On Student Loan Payments About To End For Millions


In conclusion, the student loan pause has been a much-needed relief for borrowers struggling during the pandemic. However, the big question remains – when does it end? While the current pause is set to expire in September 2021, many are calling for an extension to provide additional relief.

It’s important to note that even when the pause ends, borrowers still have options. Income-based repayment plans, loan forgiveness programs, and refinancing are all viable options to help manage student loan debt.

In the meantime, borrowers should stay informed and continue to advocate for policies that provide support during these challenging times. The future of student loan relief may be uncertain, but with perseverance and determination, borrowers can navigate through these difficult times and achieve financial stability.

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