All good things must come to an end, and for federal student loan holders, that end will be on Jan. 31, 2022. So, you’ve got a few months left to take full advantage of all the CARES Act has to offer. Here’s how.
Four months and counting: That’s how long those with federal student loans have until all the pandemic-related reprieves on payments officially come to an end on Jan. 31, 2022. Until then, take advantage of all the strategies available to you to put yourself in the best possible financial position.
The coronavirus relief bill, known as the CARES Act, was signed into law in March of 2020. It suspended loan payments, set interest rates at 0% and stopped collections on defaulted student loans. Its protections were extended multiple times, with the last extension coming on Aug. 6. As a result, for nearly two years, federal student loan borrowers were not required to make payments and saw no interest accrue during the relief period.
No action is required by qualified borrowers, as the loan payment suspension or forbearance will automatically continue through the end of January. Does that mean that borrowers must resume paying on Feb. 1? Not necessarily.
After the analysis is complete, you will be provided with your options based on the qualification factors required by the Federal Government and Department of Education. What happens if I don’t want to move forward? There is no obligation to hire our firm after the initial evaluation.
