What You Need to Know With the Federal Student Loan Payment Freeze Ending Aug. 31

"After more than three years, the pause on federal student loan payments will end on Aug. 31. The Covid-related relief program, started by President Trump and extended numerous times by President Biden, suspended payments, froze interest, and prohibited collections for about 43 million Americans," Checkbook reports.

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Have questions? Need help? Your loan servicer can provide free assistance. But you’ll need to be patient. It may take time to reach your loan servicer by phone. With millions of borrowers transitioning into repayment at the same time, these companies 'may be overwhelmed with a high volume of inquiries,' warns the National Association of Student Financial Aid Administrators (NASFAA).

You may also want to talk to a certified student loan counselor at a non-profit credit counseling agency. In most cases, the initial consultation is free. You can find qualified counselors near you on the National Foundation for Credit Counseling website, or call 800-388-2227.

'You should never pay an outside entity to help with your student loans,' NASFAA cautions. While you may call your loan servicer, your servicer will always initiate communications with you via email, NASFAA warns. 'Unless you initiate the contact, you should never share personal information over the phone.'"

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: 8/12/2023

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