“About 30 million to 40 million Americans have gotten a financial reprieve over the past two years: They haven’t had to pay principal or interest on their federal direct student loans,” Marketplace reports.

"The student-debt moratorium was originally passed as part of the CARES Act to help the economy and consumers weather the severe downturn at the start of the pandemic. It’s been extended several times, but now it’s set to expire on May 1 — that is, unless it’s extended yet again."

..."And now, said Justin Draeger at the National Association of Student Financial Aid Administrators: 'It’s very unclear. Nobody’s sure that May 1 is actually going to be the repayment start date.'

Loan servicers are notifying borrowers about payment options and the like. But the Education Department has advised them not to send out bills or loan statements yet. 

The Education Department told Marketplace in an email that it “will continue communicating directly with borrowers about federal student loan repayment by providing clear and timely updates.”

All this, said Draeger, 'creates confusion, and not just for loan servicers, but colleges and universities, who are trying to prepare their students and graduates for loan repayment.'”

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: 3/16/2022