The day we’ve dreaded is upon us: Student loan payments are coming back in May.
In case you missed it, federal student loans and accumulating interest were put on hold for six months when Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 27, 2020. This was in response to COVID-19 forcing millions of Americans into financial uncertainty and unemployment, and as the pandemic continued to interrupt the world, the pause was extended into 2021 and then again until Jan. 31, 2022. Despite the Biden administration warning that this would be the “final extension,” repayments were then postponed further to May 1, 2022, which brings us to our impending deadline.
Student loan debt in the United States totals $1.749 trillion. Over 65% of today’s college students graduate with student debt and the average federal student loan debt balance sits at $37,113, so if you are worried about the return of repayments, you are definitely not alone.
Are Repayments Likely to be Postponed Again?
President Biden continues to push for student loan forgiveness and has hinted that we may see yet another delay to repayments in May. However, this rumor shouldn’t be relied upon until it is officially announced as fact. At this stage, you should plan for your repayment requirements to start back on May 1.
