4 things student loan borrowers should know about the extended payment pause

by Annie Nova, CNBC

Student loan borrowers got some happy news this holiday season: They’ll have an additional three months before they have to start making their payments again.

The payment pause, which has been in effect since March 2020, was scheduled to expire Jan. 31, but the Biden administration announced it was extending the relief until May 1.

Outstanding student loan debt in the U.S. has surpassed $1.7 trillion and burdens Americans more than credit card and auto debt. Around a third of borrowers are in delinquency or default. The average monthly payment is around $400 a month.

Recent polling of student loan borrowers found that even among those who are fully employed by now, 89% are still not financially secure enough to restart payments.

 

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