(AbsoluteNews.com) – When Congress passed the CARES Act in March 2020, it allowed everyone with a student loan to stop payments, and it set the interest rate to zero. In May, the pause on payments runs out, and people will once again have to take care of their obligations. Fortunately, students can take steps to prepare for their loan restarts by adjusting monthly budgets to ease the possible financial pressure in 2022.
My full statement: https://t.co/8Z5KFo3kGU
— President Biden (@POTUS) December 22, 2021
First, students should contact their loan servicers and “read every piece of mail and email” about their debt. Some banks aren’t ready for the influx of payments and may require special instructions or time frames, which are important to know. Students should know who, when and how much to pay.
Students should start budgeting now. Loan payments won’t restart until at least May 1, 2022, but that date is right around the corner. Fitting the bill into one’s budget and adjusting other obligations to account for the additional debt now will help ensure everything is in order when the time arrives. Not only will payments resume at the beginning of May 2022, but the interest rate will, too.
The last thing to do is talk to the lender to find out if loans can be refinanced if needed. Lowering the rate might make it more feasible to fit the amount into a monthly budget.
Be sure to direct any questions about specific student loan repayments to the original lender before the deadline.
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