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Why student loan borrowers may want to pay during payment suspension
Federal student loan repayments have been suspended until May 1, 2022. During this relief period (which only applies to federal student loans), interest isn’t accrued, collections attempts have been suspended, and payments towards loans are considered optional. Although payments aren’t required, there’s a reason that student loan borrowers should consider making payments. During the payment suspension, student loan servicers are required to report student loans as current, even when the borrower didn’t make a payment. These “payments” are not used in calculating the payments that made towards the borrower’s repayment plan. Let’s …