The Department of Education has extended the student loan repayment pause which was set to expire at the end of 2022. There will be 3 possible scenarios on which repayments will begin; 60 days after debt cancellation, 60 days after the current lawsuits are resolved or 60 days after June 30 if legal action fails. The current student debt relief plan, which is being held up in court, would eliminate up to $10,000 for low to middle income borrowers and up to $20,000 for Pell Grant recipients.
We currently ask our clients to continue paying your loans as they are currently not accruing any interest and if the debt relief doesn’t go into effect you will have saved on interest going forward. If they do pass the debt relief you will be able to ask your loan provider for a refund for the amount that you are eligible for under the debt relief program.
Please contact us if you have any questions.
Thanks,
Directional Wealth Management
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