Student Loan Pause Ending Soon

The pause on student loan interest and payments that was provided through the CARES Act for Federal student loans will end on January 31, 2022.  The Consumer Financial Protection Bureau (CFPB) recently provided good information and handy links to help consumers prepare.    

Student loans | Consumer Financial Protection Bureau (consumerfinance.gov).

The CFPB recommends 3 steps:

1. Make sure your contact information is accurate. 

They have provided links to check and update your information on your profile.  If you aren’t sure who your servicer is, there is also a link and phone number to help you find that information. 

2. Understand your options if you can’t afford payments.

Included are links about income driven repayment plans, forbearance and deferment.  A link to a loan simulator is also included that can help borrowers choose a repayment plan.

3. Watch out for scams. 

The CFPB warns to not provide personal information or money if someone contacts you offering to suspend your student loan payment.  They also state the “Biden Loan Forgiveness” or “CARES Act Loan Forgiveness” programs do not exist.  Beware if you are contacted and offered these programs.

Verity also partners with GreenPath Financial Wellness and they have certified student loan counselors on staff.  If you need more personalized help in determining your options for student loans, contact them for advice at 1-888-337-3399 or www.greenpathref.com.  The sessions are free.  

One last tip!  A very high volume of calls and requests are expected by the lenders once the pause ends.  It is highly recommended that borrowers begin contacting their lenders now for assistance. 

Authored by Charnell Morud, Verity’s financial coach