This information gift ideas a schedule of the latest incidents related to college student fund and you may takes a peek at what is in the future to possess college student financing consumers.

Emma Lofgren

Since the start of the pandemic, the federal student loan system has been in a constant state of flux. Two presidents and Congress have put loan repayment on hold and stopped the accumulation of interest to help borrowers weather the economic fallout from COVID-19. In addition, the U.S. Department of Education has undertaken massive new initiatives to address some of the failures of the Public Service Loan Forgiveness (PSLF) program and income-driven repayment (IDR), which the department estimated could bring millions of borrowers closer to forgiveness. Meanwhile, four of the companies that serviced student loans under contract with the department announced that they would no longer participate in the federal student loan program, meaning the borrowers assigned to them must be transferred to other servicers.

This new disaster procedures offered far-required save so you’re able to borrowers, however the frequent alter along with triggered distress. There are probably way more notices ahead as President Joe Biden establishes whether or not to continue brand new education loan relief tips-known as “commission stop” of the Education Agencies plus the “national crisis forbearance” because of the student loan servicers-and just how to deal with a propose to terminate a point out-of pupil obligations.

To help individuals grab inventory regarding just what keeps occurred and just how transform continues to apply to her or him, so it timeline screens the big occurrences impacting federal figuratively speaking while the the start of new pandemic, along with when the newest commission pause try extended. Continue reading →