"For 42.9 million student loan borrowers , it’s been 18 months without a payment. That ends in October — ready or not. The interest-free federal student loan payment pause, known as a forbearance, was extended three times after it initially went into effect in March 2020 as a way to help reduce the financial blow many borrowers experienced as a result of the pandemic," ABC News reports.
..."KNOW YOUR REPAYMENT OPTIONS
'Your options are not ‘pay or default,’' says Megan Coval, vice president of policy and federal relations at the National Association of Student Financial Aid Administrators. 'There are options in between for lowering payments. Nobody, including the federal government, wants to see you go into default.'
Default happens after roughly nine months of late federal loan payments. It can result in a damaged credit score, wage garnishment, withheld tax refunds and other financial burdens."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 6/24/2021