Are you stressed about your federal student loan bill? Well, you’re in luck. The government has allowed another federal student loan extension through Sept. 30 The original pause for federal student loan payments had originally been set to end Jan. 31 for more than 42 million borrowers. This extension means that interest rates for student loans remains at 0% for almost another year. However, remember to keep in mind that this relief does not apply towards all student loans, especially private ones.
This loan deferral gives you and your family a chance to slow down and catch up on your other bills and expenses. Or, if you are in the position to do so, you can use this relief as a way to keep building up your emergency fund. Also make sure to use this time to think about your future repayment plan as this relief will not continue forever.
Moving forward, Biden has said he is forgiving up to $10,000 in federal student loans for borrowers. But borrowers have no guarantees that such a change will take place or when. So, right now it’s important to take a realistic look at your overall financial situation and try to use the next eight months to your advantage. There is pending legislation to forgive student loans, so make sure to stay tuned for updates to come. If you have any questions related to your student loans and your strategy to repay them, please contact us at info@shermanwealth.com or schedule a complimentary 30-minute consultation here.
