SPRINGFIELD, Mo. — One of President Joe Biden’s first actions in office will extend the pause on student loan payments through the end of September.
Debt counselors in Springfield said student loan payments have simply been put on hold. While the payments are on hold, no one can fall behind or rack up interest.
“You want to make sure that your loan is available and eligible to be deferred,” said Doug Watson, with Consumer Credit Counseling Services. “If you’ll confirm that with your servicer, then there’s really nothing else you have to do.”
The previous pause was set to expire at the end of the month. Watson said students should look into things to see if they qualify.
“You want to make sure that your loan is available and eligible to be deferred,” said Watson. “If you’ll confirm that with your servicer, then there’s really nothing else you have to do.”
Biden’s executive order brings many graduates like Holly Milam a sigh of relief.
“That’s fantastic; maybe I can catch up without having to pay the interest,” said Milam.
Watson said if your student loan payment is taken from your bank account each month, it may have been automatically paused by your loan provider. If not, you may need to pause the payments yourself through your bank.
“It’s not like suddenly like student loan companies are going to come and what something new, you simply begin your payments back again,” said Watson. “Anything you can pay on it during the time that this deferment is going on and the interest is not being charged, it will reduce the amount you’d owe on your loan.”
Watson says the best thing to do to see where you are at with your student loans, whether you qualify for this pause in payments, or if you are eligible to receive any kind of forgiveness – is to visit studentaid.gov