Make sure you understand how it applies to your loans
For More Detailed Information on the Federal Student Loan Pause, visit: studentaid.gov/announcements-events/coronavirus
Federal Student Loan Pause
Payment pause & interest waiver until 1/31/2022:
- a suspension of loan payments
- a 0% interest rate -see eligibility list
- stopped collections on defaulted loans
Pro Tip:
- This is an opportunity to pay down on your principal due. Try to pay down as much as possible while there is no interest being applied!
Public Service Loan Forgiveness PSLF
- Suspended payments count toward PSLF and TEPSLF as long as you meet all other qualifications. In this special circumstance, you could not make payments during the pause.
Private student loans - Not eligible for "Pause"
Ways to Pay off Private Loans
- Refinance high-interest loans
- Make extra payments on your highest interest loans
- After paying off a loan, apply that minimum payment to other outstanding loans to pay off faster.
- Evaluate your budget and spending habits to see if more money can be allocated to paying down debt.
Big Picture - Paying Off Debt vs Saving
Not everyone should pay off student loans early.
First, make sure you’ve:
- Saved at least 3-6 months of expenses for emergencies.
- Started saving automatically for retirement, either by getting the company match on a 401(k) or putting money in a Roth IRA.
- Made a plan to pay off credit card balances, which often have the highest interest rates of all.
Information pulled on 8/6/21: https://studentaid.gov/announcements-events/coronavirus