Federal student loan payments were scheduled to resume May 1.
The repayment pause will be extended until August 31, 2022.
How can I take advantage of the extension?
Student loan borrowers don’t have to make payments until after August 31 this year. Interest rates are expected to stay at 0% until then. It was extended again in fear that many Americans would quickly fall behind. Find more information here.
If your income allows, consider these ways to take advantage of the extension:
- add money to your emergency fund
- It could be beneficial to put what you would pay on your student loans monthly into a savings account. Try to put it into an account without a withdrawal penalty.
- pay small amounts
- save for retirement
- be ready to resume payments
- The pause will eventually end, take a look at your budget and be prepared to make payments.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]