In his first few days as Command-in-Chief, President Joe Biden signed dozens of executive orders. Some overturned Trump administration policies, while others are a continuation of the federal response to the COVID-19 pandemic.
No payments due on federal student loans until at least September 30
Biden s order means payments will remain paused until September 30, though the federal government could again extend that deadline. When forbearance ends, interest rates will resume at the same rate as prior to the forbearance, and automatic payments will also resume. Remaining balances will pick up where they left off, and borrowers will owe the same amount that was due in March.
It is possible to continue making payments on student loans during forbearance. In order to do so, borrowers will need to contact their federal student loan servicer. However, it could be a better idea to save the cash for student loan payments later on, or save in an emergency fund, financial planners say.
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President-elect Joe Biden got a lot of attention at the beginning of the COVID-19 pandemic when he called on Congress to forgive a minimum of $10,000 of federal student loans per borrower as part of a coronavirus relief bill. The legislation was proposed by four senators, including Senate Minority Leader Chuck Schumer and Senator Elizabeth Warren.
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