July 1, 2022
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Will student loan repayments be postponed until 2023?

By on February 6, 2022 0

Will student loan repayments be postponed until 2023?

Here’s what you need to know.

Student loans

Student loan payments for federal student loans are scheduled to resume on May 1, 2022. This means student borrowers should expect federal student loan payments to resume, student loan interest to start accumulating again and understand that student loans in default could lead to wage garnishment. Against this backdrop, a new survey from Data Progress shows that the majority of Americans want student loan payments suspended until December 31, 2022. According to the survey:

  • 59% want student loan repayments suspended until December 31, 2022;
  • 33% oppose extending the student loan payment pause beyond May 1, 2022;
  • 35% are strongly in favor of extending the student loan repayment pause; and
  • 24% are rather in favor of extending the student loan repayment break.

Why the student loan payment break should be extended

Progressive Democrats in Congress, including Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA), have lobbied the president to extend the student loan payment pause beyond May 1, 2022. (Biden stops challenging student loan forgiveness after public outcry). Federal student loan repayments have been on hold since March 2020, when Congress passed the Cares Act and provided historic student loan relief. The U.S. Department of Education estimates that more than 40 million student borrowers have collectively saved $5 billion per month through this temporary student loan forbearance. (Shock poll: student loans will be completely canceled before student loan payments restart in May). Here are some reasons why the student loan payment break should be extended:

  • state of the economy;
  • ongoing Covid-19 pandemic;
  • some student borrowers are experiencing financial difficulties; and
  • some student borrowers are not ready to resume student loan repayments.

Why student loan repayments should restart on May 1

Some think student loan repayments should restart on May 1. For example, this lawmaker says Biden should restart student loan repayments and that forgiving student loans is a bad idea. There are several reasons why federal student loan repayments are expected to restart on May 1:

  • student loan repayments were halted for two years;
  • student borrowers will have received over $120 billion in student loan forgiveness as a result of this student loan relief;
  • the Covid-19 pandemic is not over, but it is causing less economic damage than last year or the year before; and
  • The U.S. Department of Education plans to help financially vulnerable student borrowers transition to student loan repayment.

(Here’s Who Won’t Get Student Loan Forgiveness).


Will Biden extend student loan relief again?

While a poll may indicate support for another extension of student loan relief, it is important to note that this is only a public opinion poll. Lawmakers and the president don’t necessarily decide policy based on polls. President Joe Biden has extended student loan relief three times. (If Biden cancels student loans, that will happen next). If Biden extends student loan relief beyond May 1, it would be his fourth extension. Previously, President Donald Trump twice extended student loan relief. That said, there are no plans to extend the student loan repayment break beyond May 1. While that may happen, the White House and the US Department of Education have repeatedly confirmed that student loan repayments will resume as planned. This means that you should prepare for the restart of student loan repayments and not expect another extension.

Here are some popular ways to prepare for the restart of payments and save money on your student loans:


Student Loans: Related Reading

Here’s who won’t get student loan forgiveness

Are you eligible for $5 billion in student loan forgiveness?

How to Get $1.7 Billion in Student Loan Forgiveness

7 Ways to Get a Lower Student Loan Repayment