Dear Financial Aid King,
Although my student loan payments are suspended, should I continue to pay them off or save money?
What is the smartest move!?
Sincerely,
Smart Move
Dear Smart Move,
Yes, all federal student loan payments are indeed suspended until August 31, 2022.
It is also true that student-loan interest is frozen, which makes it an opportune time to pay down student loan debt if you are in the position to do so. Since these loan payments are interest-free, you are getting ahead of the game by making payments.
No interest is accruing now, which means you are effectively saving money. You should contact your student loan provider if you decide to continue making payments.
The King understands that not every college alum is in the position to pay off their student loans at this time. That’s why the federal government has continued to extend the student loan payment pause started by the 2020 CARES Act.
If you do not have a steady income at this time, then I suggest taking advantage of this suspension.
Be smart and stay safe!
The King
