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Student Loan Freeze Extended Again

Financial Planning College Planning

A 30-second read by the Baron Team:  On November 22, 2022, the U.S. Department of Education announced an extension of the pause on student loan payments until the Department is permitted to implement the debt relief program or the litigation is resolved.

According to the U.S. Department of Education:  “Payments will resume 60 days after the Department is permitted to implement the program or the litigation is resolved, which will give the Supreme Court an opportunity to resolve the case during its current Term. If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.”

Studentaid.gov, provides the following 4 steps on how you can prepare for repayment to resume, as well as other Frequently Asked Questions.

  1. Update your contact information in your profile on your loan servicer’s website and in your StudentAid.gov profile.
  2. Review your auto-debit enrollment or sign up for the first time. To do so, log in to your loan servicer’s website or contact your loan servicer directly.
  3. Check out Loan Simulator to find a repayment plan that meets your needs and goals or to decide whether to consolidate.
  4. Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size.

Please reach out to your Baron Team if you have any questions.

Disclosure: This is a general communication being provided for informational purposes only. This material is not intended to be relied upon as a forecast, research, legal, tax or investment advice.  Please consult your financial planning and tax professional for personal advice.