Federal Student Loan Deferral Ends
The U.S. Department of Education’s COVID-19 relief for student loans has ended. The 0% interest rate ended Sept. 1, 2023, and payments restarted in October. If your loans were eligible, the government automatically paused your loan payments and set your interest rate to 0% from March 13, 2020, until Sept. 1, 2023. This payment pause is also known as an administrative forbearance.
According to CNBC, student loan debt in the U.S. has surpassed $1.7 trillion and burdens Americans more than credit card and auto debt, and around a third of borrowers are in delinquency or default. The average student loan monthly payment is around $400 a month. During the payment pause, most loans didn’t collect interest.
Students are encouraged to contact MMCCU before applying for a student loan. If you are struggling to repay student loans, MMCCU is here to help with options.
To learn more about student loans, click here.
