People also ask
Will the new student loan changes bring borrowers closer to debt forgiveness?
The U.S. Department of Education recently announced a number of massive changes to the federal student loan system, which it says could bring millions of borrowers closer to debt forgiveness. Federal student loan borrowers have long run into serious issues, including misinformation from their servicers, too many choices and complicated terms.
Will you have to pay your student loans in September?
The U.S. Department of Education has extended the payment pause on federal student loans for the sixth time since the pandemic began more than two years ago. This time, borrowers have been told they won鈥檛 have to resume paying their bills until September. So, here鈥檚 what borrowers need to know.
Are student loan rates going up?
Student loan rates are increasing. Each May, Congress sets federal student loan interest rates for the academic year based on an auction of 10-Year Treasury notes. As the Federal Reserve has raised interest rates to control inflation, consumer debt has become more expensive. How much more expensive will student loans become?
Do student loans continue to grow with interest?
Yet holders of Federal Family Education Loans and private student loans are not covered by the policy, meaning their debt will continue to grow with interest. Borrowers who can afford to pay may opt to take advantage of the temporary suspension of interest to pay down their student debt鈥檚 principal.