Since the start of the COVID-19 pandemic, back in March of 2020, federal measures have been put in place to combat the financial hardships Americans have faced as a result. As other COVID-19 safety measures and mandates have wound down, the pause on federal student loan payments is rapidly nearing its end. Market Watch recently broke down a list of options some borrowers will have should the Biden Administration fail to provide Americans with the much needed relief of another extension on the pause or – better yet – student loan cancellation. While it’s important that we continue to urge President Biden to extend the pause on student loan payments and advocate for complete cancellation, borrowers should also prepare for payments to resume after August 31st and understand what that could mean for their financial future.

“It’s time to start thinking about how you will make payments when the payment pause ends. Firstly, make sure you have updated your contact information with your lender so you can get all the important updates on your payment obligations. Beyond that, here are some things to consider:
While you’re still free from making any payments or seeing your wages garnished for collection, consider bringing defaulted loans current if you can. Rehabilitating your loan will halt garnishment and other collection actions, such as having your tax refund seized. It also allows you to access benefits such as deferment, forbearance, a choice of repayment plans and loan forgiveness.”

The call for President Biden to take action and cancel student loans is more urgent than ever before. We’re asking that Biden cancel ALL student loans, without unnecessary means-testing, and provide the much needed economic relief that will help more than 43 million Americans. At Debtless, we know that debt cancellation is the most effective way to restore financial stability and freedom to communities across the country.

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