Student Loan Relief

Tuesday, May 17, 2022

On April 6, 2022, the U.S. Department of Education extended the federal student loan relief for the sixth time!

Here's what you should know:

• Temporary 0% interest has been extended through Aug. 31, 2022

• No one has been required to make a payment

• If you graduated in 2021, you have yet to need to make a payment despite your 6-month grace period

What does this mean for current students?

• Nothing. If you are still in school, you are still in your in-school deferment. Federal loans give you a generous 6-months before they come knocking on your door.

What about alumni who graduated just last year?

• By now, your grace period has already expired, but due to this relief extension you haven't been required to make a federal student loan payment.

Keep in mind this is only for Federal Student Loans and not Private Loans.

Lastly, just because you don't have to make a payment doesn't mean you shouldn't. If you can afford it, it’s financially advantageous. Why? With interest rates at 0%, this means there is no new interest accrual. Every dollar of student loan repayment first will reduce any legacy student loan interest. Then, once you pay off the interest, every incremental dollar directly will reduce your principal student loan balance. This is a golden opportunity to pay off student loans faster, and any amount you can afford can save you money.

Source: Studentaid.gov and Forbes