While the current pause for federal student loan repayments is expected to end August 31, 2022, it is widely thought that this date may actually be extended again until the end of the year (which is past the mid-term elections).
The Department of Education furthered this thought process by telling its servicers NOT to send bills saying student loans are coming due in September.
It’s now August 19. Less than two weeks left to the end of the month. In the past, decisions to extend the payment pause were made approximately 40 days before the expiration of the deadline.
Now we are hearing anecdotal information that borrowers are seeing notices in their online accounts that there is a payment due – or the next billing date will be September or October. It’s hard for borrowers, our clients and our firm to plan with this sort of uncertainty.
Aidvantage in particular appears to be getting ready for repayment.
I wish we had answers…