CHICOPEE, Mass. (WWLP) — The pause on federal student loan payments is coming to an end next year on January 31.
Since March 27, 2020, federal student loan interest rates have been set to 0 percent and payments have been paused. Now that the pause is expiring, it’s causing stress to many people, especially young adults.
“Well having not to think about it for the last two years because of the pandemic has really helped me financially,” said Sydney Pasini of Springfield. “Now that it’s coming back on and going to start again, I’m definitely trying to budget myself more.”
Experts recommend contacting your loan servicer now. You may be entitled to forgiveness or lower payments, especially if the pandemic changed your financial status in any way.
Several loan providers have also transferred loans to different servicers. Borrowers with loans serviced by the Pennsylvania Higher Education Assistance Agency or FedLoan, Granite State Management & resources, and Navient will be impacted.