Federal student loans resume September 30
FARGO – In March 2020 – the start of the COVID-19 pandemic – the federal government suspended all federal student loan payments and lowered interest rates to 0%.
Now, 17 months later, several different expiration dates have passed. The next one is scheduled for September 30. But what does this mean for former students who have not needed to repay their loan for over a year?
WDAY News spoke with North Dakota State University Director of Financial Aid and Scholarships Matt Sanchez.
“I think the biggest concern is making sure this is a seamless transition for student borrowers to repayment,” Sanchez said. “Obviously, students were paying off their student loans before the moratorium, so we just want to make sure there is a seamless transition to those repayments. “
While the pandemic has arrived in waves, federal student loan forbearance has remained a constant. At the end of it, whether it’s September 30 or later, Sanchez says students can take action if they aren’t able to bear the financial burden.
“For students who are having this type of financial difficulty, explain it to their loan officer so that they can hopefully continue with the suspension of payments until they are in a better financial situation.” , Sanchez said.
Sanchez also has a suggestion for financially healthy former students.
“Borrowers obviously want to log back into their student portal or loan management portal and make sure their information is up to date with their server,” Sanchez said.
While he’s not sure if the abstention will be extended, Sanchez said that even if it does, it never hurts to be prepared.