President Biden Extends Federal Student Loan Payments Deferrals, MU Grad “Grateful” Missouri News
COLUMBIA – President Joe Biden signed 17 executive actions on Wednesday, including the extension of federal student loan deferrals, which was originally scheduled to expire on January 31.
Borrowers will not have to make payments until October 1 at the earliest.
Congress initially passed a relief bill that automatically suspended student loan payments and waived interest from March through September, but was extended by the Trump administration.
Kendra Cowart graduated from the University of Missouri in December 2019. Cowart was a teacher at Eliot Battle Elementary but was fired when the pandemic began.
Grateful for the student loan payment hiatus, Cowart remains optimistic about her loan repayment.
âI firmly believe that when I need something, it will be there,â said Cowart.
Cowart said she couldn’t afford it without her parents.
âI’m just so lucky that both of my parents have high paying jobs,â Cowart said. âBecause my job now is just enough to pay my rent. “
Graham McCaulley, MU Extension associate professor with Personal Financial Planning, said there is nothing wrong with the payment break and it can really help people.
“If you are someone who is having a hard time or have a higher interest debt and you are just trying to get through the month, go ahead and take this because it will help you,” he said. he declares.
McCaulley also said those who are on a civil service loan forgiveness should definitely take this opportunity, because even if there are no outstanding payments, it still counts every month as if there is. .
The professor added that whenever there is some sort of big change like this, there may be crooks.
âSome people have been contacted to say that if you pay a fee, we can get you into this plan,â McCaulley said. “There is no charge, you don’t have to pay for it.”
Those who have already suspended their payments since March do not have to contact their server. McCaulley said there is no process for this and their student loans portal will reflect the postponement.
To calculate how much you’ll save, McCaulley said to go to any online calculator, enter your balances and your interest rate, calculating by the end of September.