Federal Student Loan Forbearance Extended Yet Again

The White House has once again extended the federal student loan payment pause as it battles lawsuits threatening to derail its sweeping student debt forgiveness plan. The extension could stretch no later than June 30, 2023, the Department of Education said Tuesday. But if the Supreme Court decides the fate of Biden’s plan to cancel … Continued

Is $20K Student Debt Forgiveness Still Going to Happen?

No one knows for sure when — or if — student loan forgiveness is coming. As of now, you should plan for payments on your federal student loans to resume in January 2023, especially if you were counting on debt cancellation to erase your balance entirely. Why? A federal judge in Texas has struck down … Continued

What Student Loan Cancellation Could Mean for Your Budget

The Biden administration announced plans for federal student loan relief last month. The plans include the cancellation of up to $10,000 in debt for borrowers who meet income requirements and up to $20,000 for Pell Grant recipients. Beyond cancellation, the proposal also extended the pause on loan repayment through the end of the year and introduced a … Continued

Interest Rates on New Federal Student Loans Going Up for 2022-23

Two years ago, federal student loan borrowers enjoyed the lowest interest rates ever on their loans. This fall, rates for undergraduate borrowers will be nearly double what they were in 2020-21. The interest rates for new undergraduate direct federal student loans are set to increase to 4.99% for the 2022-23 academic year, up from 3.73% … Continued

College-Bound Grads May Share $40K in Debt With Their Parents

This year’s high school graduates could take on nearly $40,000 in student loan debt in pursuit of a bachelor’s degree, according to a NerdWallet analysis. And with this debt stretching across federal, parent and private loan sources, the final cost of their education will grow far beyond tuition and fees. Today, it’s nearly impossible to … Continued

Student Loan Pause Extended Again — Is There an End Game?

Federal student loan borrowers just got an extra four months before their payments resume. If that feels like déjà vu, it’s because this is the sixth extension of the interest-free payment pause that went into effect in March 2020 under the Trump administration, at the onset of the COVID-19 pandemic. Payments had been scheduled to … Continued

How the Student Loan Pause Has Played Out for Borrowers

Two years after the chaos of the pandemic prompted Congress to pause federal student loan payments, new data show many borrowers have used that extra room in the budget to shore up their overall finances. Some have inched closer to eligibility for student loan forgiveness. Economists and lending experts say it’s unclear how long that … Continued

Student Loan Pause is Extended, With Payments Resuming May 2

The Biden administration just hit the snooze button again on the restart of student loan payments. Now, millions of federal student loan borrowers have 90 extra days to figure out how to pay a bill they’ve gone nearly two years without. “We are really relieved that the president changed course and that student loan borrowers … Continued

Don’t Skip These Steps When Borrowing Parent Student Loans

In more than one-third of U.S. families, parents decide how to pay for college, according to a July 2020 report from private lender Sallie Mae. Half of those parents don’t inform the child of their decision. Joe Allen, 51, of Frederick, Maryland, did talk about college costs with his daughter, a freshman at the University … Continued

6 Things to Know About Student Loans Before You Start School

The summer before your freshman year in college means choosing classes, checking out your future roommate’s Instagram and figuring out how you’re going to pay the bills. Chances are you will need a loan: 2 out of 3 students have debt when they leave school, according to 2017 graduate data from the Institute for College … Continued