Since the beginning of the pandemic, many problems the United States is struggling with have taken the spotlight and shown how problematic they can really be.
These issues have really got people talking, including our political figures.
One of the most controversial topics has been one that affects millions of Americans despite gender or race, and that would be student loans. Student loans have become a hindrance to many millennials and their families.
Even President Joe Biden promised to help bring down student loans during his presidential campaign and promised to give student loan payers at least $10,000 to pay towards their loans.
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Still, many student loans are on hold through at least the end of August 2023, but not all of them.
So many are still in need of getting answers to help them get some financial relief.
If you have to keep paying your loans, we'll discuss ways you can manage your payments if you need help.
First, let's take a look at which student loans are on hold.
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Which student loans are on hold?
As mentioned before, not all student loans are on hold. Not even all federal student loans are on hold.
Here’s a list of which loan types are eligible and ineligible for the ongoing federal loan repayment suspension, according to USA Today.
If you were late on your loan payments, the pause also stipulates:
- Garnishment of wages will not take place.
- Federal payments (such as tax refunds and Social Security benefits) will not be withheld.
- Collection calls will stop.
- Billing statements will not be mailed.
How long are student loans on hold?
Congress passed the pandemic-inspired CARES Act in March 2020. The latest student loan extension takes eligible borrowers through at least June 30, 2023. However, this date might change if the Supreme Court makes a decision on the Biden-Harris Administration’s student loan forgiveness program by then.
While there may or may not be payments toward loans, here are five things you can do to help get your student loans back under control.
Use this grace period
Now is the perfect time to pay as much as you can toward your loans.
Tackling your interest first will help you focus more on your principal balance later.
Enroll in a payment program
Before payments are back to normal, now would be a good time to research if a payment program is right for you.
Talk to your student loan provider and ask them about different options such as the income-driven plan, graduated repayment plan, or an extended payment plan. Together, you can come up with a plan that’s best for you.
Automatic payments
Some student loan providers give a percent of the interest payment if you enroll in automatic payments. This is helpful in the long run because you’ll be paying less interest over time.
What your job offers
Some places of employment help their employees go back to school by paying part of their tuition.
Others help their employees by helping pay for student loans. Either way, take the time to ask your employer what services they offer in helping with student loan payments.
The snowball effect
If you can, using the snowball effect can help bring some organization to your payment plan as well. This happens when you start paying more on the smaller amounts first. This gets those loans out of the way and allows you to later focus on the bigger loans.
Student loans have become a million-dollar problem in this country. While there are many advocates for student loan forgiveness, it will still take some time to see if there will be any traction to the movement.
But there is no need to fear. With the right tools and the right attitude, you can tame that student loan debt and regain control of your finances.
