The federal scholar mortgage fee pause, which started in March 2020 because of the COVID-19 pandemic, has been prolonged a number of instances. The newest extension is ready to run out on August 31, 2023. After this date, federal scholar mortgage funds will resume. Nonetheless, there’s a risk that the fee pause may very well be prolonged once more. The Biden administration has indicated that it’s contemplating extending the pause, however no resolution has been made but.
The scholar mortgage fee pause has been a major profit to debtors. It has allowed them to economize and get forward on different monetary objectives. Nonetheless, the resumption of funds will seemingly put a pressure on many debtors’ budgets. In accordance with a current survey by the School Board, almost half of scholar mortgage debtors say they don’t seem to be financially ready to renew funds.