OWhen the coronavirus pandemic spread across the UNITED STATESthe government has decided to install a pause on federal student loan payments and interest.
It was when donald trump was still president and the pause on student loan repayments has already been extended six times.
Now, however, as the coronavirus pandemic really begins to die down, those who benefited from the freeze fear that they will have to start paying off those student loan debts.
When will the student loan repayment break end?
In theory, student loan repayment break set to end August 31meaning payments are expected to resume on September 1.
The last time it was extended was the chosen date, although it has been extended so many times that there is a chance it will be pushed back again.
Will the student loan repayment break be extended until 2023?
Many experts believe that the student loan repayment pause in the United States could be extended beyond the August 31 end date.
Most of these experts expect it to continue until the end of the year or possibly January.
“Our outlook assumes that the federal student loan payment moratorium will last through January 2023,” Antoine NotoCEO of student lender SoFi, reportedly told investors.
With midterms coming up in November 2022, such an extension could help Democrats win votes, as it is a very popular policy.
However, an extension throughout 2023 is less certain. Despite some calls to complete student loan forgivenessthis is unlikely to happen, so the freeze will have to end at some point.
Therefore, a likely scenario with respect to the student loan repayment pause issue could be that it is extended until early 2023, but then ends at some point in the middle of the year. next year.