When Student Loan Payments Restart

We know the past year and a half has been quite the whirlwind, and as we approach summer and the economy continues to re-open, we want to bring light to some financial stress individuals may be facing. 

Federal student loan payments are set to resume on October 1, after an unprecedented 19-month suspension that was put in place to provide financial relief to borrowers during the pandemic.Borrower balances have paused now for over a year, with no payments required on federal loans since March 2020. 

The pause on payments was originally supposed to be in place for only two 7 months, but it was extended by both of the presidents administrations. We are unsure if it will be extended once again, but will continue to follow it for all of you with student loans who may have been partaking in this extension.  We have been following the recent news of proposals to President Biden to cancel debt for American’s and will continue to report as we learn more; however, for those with student loan repayments starting up soon, its important to start thinking about your financial situation and how that will change as you begin this repayment. For questions about your financial situation or advice on tools to help organize and automate your finances, reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute conversation here.