Student loan forbearance extension: What borrowers should know

Student loan forbearance extension: What borrowers should know

Borrowers will be expected to resume payments on their federal student loan debt in May

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The White House once again extended the federal student loan payment pause through , which means borrowers have 90 additional days to prepare for repayment. ( iStock )

The payment pause on federal student loans has been extended until , President Joe Biden announced Wednesday. This decision comes after calls from prominent Democrat lawmakers like Sen. Elizabeth Warren and Senate Majority Leader Chuck Schumer urging the president to postpone repayment amid economic uncertainty surrounding the omicron variant.

But with millions of loans being transferred to new servicers, there are a few things federal student loan borrowers should know. Keep reading to learn more about the return of federal student loan payments, including your alternative debt repayment options like refinancing.

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When federal student loan payments resume in May, the process will work similarly to how it did before the COVID-19 forbearance period. Still, there are a few things you should do to make sure you’re prepared:

Update your contact information. If you haven’t yet received communications from the Department of Education about payments restarting, make sure your phone number, email and address are up-to-date with your loan servicer. (más…)

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