Student Loans Update

If you have student loans, or know someone who does, you’re probably aware that federal student loans have been paused since early 2020. Eligible loans had payments suspended, no interest has been charged, and collections on defaulted loans were stopped. As of now, the pause is scheduled to expire August 31, 2022 (just over 2 weeks from now). Payments will start up again, and interest will begin accruing, on September 1st.

That makes now a good time to check the status of your loans, make sure you can still log into your loan servicer accounts, and confirm your auto-debit details (if you had it set up prior to March 2020.)

What you probably shouldn’t do yet is start making payments again. While it’s usually a great idea to get ahead of your debt payments, we think it’s a good idea to wait a few more weeks this time. There are reports that the pause may be extended again, or that some amount of debt cancellation may be announced before the August 31st deadline.

Bottom line: you should prepare to start making payments again if necessary, but wait until we know more before you do.