Current student loan news for the week of December 13, 2021

A group of lawmakers sent President Biden a letter last week urging him to continue waiving federal student loan interest, citing the continuing financial pressure from the coronavirus on federal borrowers. Read on to learn more about this week’s student loan news.

1 current trend in student loans for the week of December 13, 2021

1. US Senators Call for Interest Relief on Student Loans When Federal Forbearance Ends

Last week, a group of 14 U.S. Senators led by Senator Raphael Warnock sent a letter to the Biden administration calling for the removal of interest on federal student loans even after the forbearance period ended on January 31, 2022.

“Many are still grappling with financial challenges as our country strives to rebuild better after the COVID-19 pandemic,” the letter read. “The accumulation of interest and rising student loan bills would place an undue burden on borrowers navigating the return to repayment process.”

Senators say interest charges weigh particularly heavily on low-income borrowers and those with high debt, and that the current student loan interest exemption saves borrowers $ 5 billion per month.

How it affects student loans

An interest waiver would not remove the burden of student loan payments entirely, but it could ease some of the payments that resume in February. That said, borrowers should always plan for a return to the status quo, including interest.

Those who anticipate financial hardship due to their monthly payments should consider federal payment relief plans, such as income-based repayment plans. Borrowers can also request an extension of forbearance from their service agent once payments have been resumed.

Federal student loan officers have started contacting borrowers about resuming payments by email, phone call, or mail. If you haven’t received any information yet, check your account details to make sure your personal information is correct, or contact your server directly to stay informed.

Key to take away

Senators urge President Biden to continue waiving interest on federal student loans after Jan.31, 2022.

Here’s how to prepare

Whether you’re new to the area of ​​student loans or already in advanced repayment, it’s wise to stay on top of how your student loan rates might change. As 2021 continues, more opportunities for cheaper loans or loan cancellation may open up; Keep an eye on the Bankrate student loan news center for the latest trends.

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