Student Loan Borrowers Approach Payment Restart with Apprehension, Confusion
"Lamesha C. Brown had seen it before: an email from the Education Department alerting of the looming restart of her student loan payments. But this time was supposed to be different, as Congress had passed a bill to stop any additional extension of a payment pause first implemented three years ago during the coronavirus pandemic," The Washington Post reports.
..."The Biden administration has launched efforts to ease more than 40 million people back into repayment and make their bills more affordable. But the rollout of those plans has also sparked some confusion.
The administration is offering a 12-month grace period in which any missed loan payments won’t be reported to the credit agencies. But some borrowers perceive this on-ramp, as the Education Department calls it, as an informal extension of the payment moratorium.
Undersecretary James Kvaal cautioned against that while speaking at a conference last month by the National Association of Student Financial Aid Administrators. 'It’s not a pause,' Kvaal told the audience. 'Our advice to people is you should be making payments.'"
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Publication Date: 8/16/2023
