The U.S. Department of Education recently extended the pause on student loan payments through May 1, 2022, which is a 3 month extension of what has been in place since the middle of 2020. This pause is really aimed at alumni and not currently enrolled students. Enrolled students who have unsubsidized Direct loans can see a benefit of no interest being assessed, as would normally happen. Interest will then resume as of May 1, 2022.
Students graduating in May need to understand that they need to do their Exit Counseling as usual since loans will be entered into repayment status as they normally do. Students with unsubsidized loans will only have interest that accrued prior to about June 2020 and interest accrued after May 1, 2022. They will need to consider this when determining what loan amounts they will have and how to best handle them after they graduate. Students and alumni can learn more at COVID-19 Emergency Relief and Federal Student Aid.
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