Student Loan Payments Won't Be Due Until September. Here's What Borrowers Need to Know

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For the sixth time, the U.S. Department of Education has extended the pandemic-era payment pause on federal student loans. Here's what borrowers should know.

That's because the months of the payment pause count toward the eventual debt forgiveness these programs lead to — whether or not you're paying, and so any money you direct to your loans during this reprieve just reduces the amount of forgiveness for which you'll eventually be entitled.has taught us how important it is to have a healthy savings account to fall back on, according to experts. People should try to build up at least six months' worth of emergency savings, they say.

With interest rates on most federal student loans at zero, it can also be a good time for people to make progress paying down more expensive debt. The average interest rate on credit cards is currently more than However, you should make sure you have enough in your emergency savings account before you address credit card debt, said That's because your credit limit shouldn't be relied on as a safety net.

"Many people had their credit card limits cut unexpectedly over the past year as lenders got especially worried about risk," Rossman said.

 

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