Student loan repayments set to resume in two weeks – experts believe freeze remains in place – CNBC | Vette Leader

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The repayment moratorium on federal student loans expires in two weeks from today. That means federal student loan borrowers will have to start making payments on their debt again after a long hiatus that began at the start of the Covid-19 pandemic in March 2020.

The most recent extension of the moratorium was signed into law by President Biden on April 6 and set an end date of August 31. However, the government has been vague on whether the repayment pause will be further extended.

Below, Select takes a look at why the student loan moratorium may continue and what else student loan borrowers should be aware of going forward.

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Will student loan forbearance continue?

After nearly two and a half years of student loan leniency, there’s a good chance President Joe Biden will extend the deadline beyond August 31, says Tara Miller, student loan advisor at GradFin.

“I think they’re likely to announce another extension next week,” Miller told Select. Their justification is based on reports that credit servicers have been told not to approach borrowers about repayment even when the deadline is fast approaching.

The Biden administration has not provided any significant or specific responses about the possibility of further extensions. The President said in a news conference on April 28 that he would have a response regarding student loans “in the next few weeks.” Fast forward to mid-August and there has still been no substantive announcement from the White House or the Department of Education on the matter.

Speaking to CBS News on Tuesday, US Secretary of Education Miguel Cardona said his department is in daily talks with the White House about the repayment pause but could not provide specifics. Select has also contacted the US Department of Education but has not yet received a response.

However, on the student loan’s Surviving Student Debt Facebook group, some borrowers have reported that their custodians say they will owe their next payment in the coming weeks. This could be partly because issuers have programmed their borrowers’ profiles to rely on the current White House mandate — rather than speculation that the repayment pause will not be extended.

Dealing with future student loan payments

SoFi student loan refinancing

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, private, college and student loans, Parents PLUS loans, medical and dental residency loans

  • loan types

  • Variable Rate (APR)

    From 2.24% (prices include 0.25% autopay rebate)

  • Fixed Prices (APR)

    From 3.99% (prices include 0.25% autopay rebate)

  • Loan Conditions

  • loan amounts

    From $5,000; over $10,000 for medical/dental residency loans

  • minimum credit rating

  • minimum income

  • Allow one co-signer

Education Loan Financing Student loan refinancing

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, private, college and student loans, Parents PLUS Loans

  • loan types

  • Variable Rate (APR)

    From 1.86% (prices include an autopay discount)

  • Fixed Prices (APR)

    From 3.99% (prices include an autopay discount)

  • Loan Conditions

    From 5 to 20 years for student loan refinancing; 5, 7 or 10 years for parent loan refinancing

  • loan amounts

  • minimum credit rating

  • minimum income

  • Allow one co-signer

Laurel Road Student Loan Refinance

On the safe side of Laurel Road

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, private, college, and student loans, Parents PLUS loans, doctor and dentist residency/scholarship loans, and special rates and reduced rates for healthcare professionals (physicians, dentists, optometrists, and physician assistants)

  • loan types

  • Variable Rate (APR)

    From 2.50% (Price includes 0.25% Autopay discount and assumes no associated Laurel Road Checking discount)

  • Fixed Prices (APR)

    From 3.99% (Price includes 0.25% autopay rebate and assumes no associated Laurel Road Checking rebate)

  • Loan Conditions

    5, 7, 10, 15, 20 years (but also offers any term under 20 years, subject to underwriting criteria)

  • loan amounts

    For bachelor’s degrees and above, a minimum of $5,000; for eligible healthcare associate degrees, up to $50,000 in loans for non-ParentPlus refinance loans

  • minimum credit rating

  • minimum income

  • Allow one co-signer

Serious student loan refinancing

  • Costs

    No issuance fees for refinancing

  • Eligible Loans

    Federal, private, graduate and undergraduate loans

  • loan types

  • Variable Rate (APR)

    From 1.89% (prices include 0.25% autopay discount)

  • Fixed Prices (APR)

    Starting at 3.49% (prices include 0.25%% autopay discount)

  • Loan Conditions

    Flexible terms between 5 and 20 years

  • loan amounts

    Minimum $5,000, up to $500,000 (California residents must apply for refinance of $10,000 or more)

  • minimum credit rating

  • minimum income

  • Allow one co-signer

bottom line

Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editors and has not been reviewed, approved, or otherwise endorsed by any third party.

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