Nov 20, 2021 10:50 AM EST
Federal Student Loan Payments Resume In 2022: Debt Resolution Specialists, Resolvly, Weigh In
As the world slowly emerges from the shadow of the COVID pandemic, an economic measure enacted to ease student loan repayment is set to expire in the first quarter of 2022. In this post, Resolvly discusses the end of the student loan moratorium, what it means for debtors, and ways to get ready for the resumption of college loan repayments.
The Student Loan Moratorium
Back in March 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act. One of its provisions delayed repayment of outstanding federal student loans to help debtors survive the economic crunch. The CARES Act also waived interest fees for the length of the moratorium.
The original end date for the moratorium was September 30, 2020. Since then, the end of the student loan moratorium has been pushed back a few more times. In September 2021, current President Biden extended the period again through January 31, 2020, insisting this newest deadline would be the last.
Now, as debtors face the return of regular payments and the resumption of interest charges, they can help soften the blow by taking a few steps.
Make a Personal Budget
Setting up and sticking to a regular budget is always a good idea. A personal budget is almost mandatory in the face of the return of student loan payments in just a couple of months.
Write down your monthly income and expenses over the last few months (bank and credit statements can be especially helpful in this regard). Break down your expenses into different categories. Having multiple categories will give you a better picture of where you can scale back.
Consult your loan servicer to confirm your student loan balance. Then, with your budget in hand, adjust spending amounts to start payments again while maximizing cash flow.
Get a Side Hustle
COVID altered the global economy, especially the employment landscape. Many regular employees had to take on other jobs to ease their pocketbook pain. A lot of these jobs are self-directed, and many companies offering them need new employees regularly.
Consider looking into some of these popular "side hustles," such as:
● Food or grocery delivery
● Lyft or Uber driving
● Mystery shopping
● Survey taking
● Freelance writing or data entry
The possibilities for side gigs are extensive. Many positions are schedule-adjustable and can generate surprising amounts of revenue.
Defer or Restructure Your Repayments
Some student loan debtors still won't be able to afford to resume payments when the moratorium ends, even with adjusted budgets or added revenue. In those cases, they might be able to reduce or defer future payments to get them through.
The federal government has forbearance and deferment programs for those who haven't recovered enough financially. Optionally, you may be able to restructure or extend your monthly payments in line with your monthly income through a Department of Education Program. Talk to your loan servicer about both options.
Resolvly LLC, based in Boca Raton, FL, helps clients nationwide find attorneys who focus on debt resolution. Our agents help consumers find debt relief programs that are legal and effective.
Attorneys in our network assist clients in taking care of credit card debt, medical bills, private student loans, business debt, and repossessions. To find out more, schedule a free consultation with Resolvly.
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