COVID-19 Student Loan Relief Extended through May 2022
Last week, the U.S. Department of Education announced* a further extension of the COVID-19 emergency relief for student loan repayment, interest, and collections. The pause was previously extended until January 31, 2022, but an additional 90 day extension was approved through May 1, 2022.
So what does this mean for you? Eligible** loans have been granted the following relief measures:
- Suspension of loan payments
This suspension will help 41 million borrowers save $5 billion in student loan payments per month. There is no fee for this, and your loan servicer will automatically implement the suspension. There is nothing you need to do on your end!
- Temporary 0% interest rate
Your loans will not accrue (accumulate) any additional interest until May 2022. Optional payments made during this time can allow you to pay off your loans faster, and lower the total cost of your loans over time.
- Stopped collections on defaulted loans
Throughout the emergency relief period, tax refunds will not be withheld, wages will not be garnished, Social Security payments (including disability benefits) will not be withheld, collection calls will stop, billing statements will not be sent, and interest will not accrue.
When your student loan payments are set to resume, you may have some questions on what that will look like for you. If you are interested in having your federal or private loans evaluated by CCCS of Buffalo's student loan experts for various options you may have available to you (consolidation, income based repayment, forgiveness, deferment, forbearance, etc.), please give us a call at (716) 712-2060 option 1 to schedule a student loan counseling session!