Federal Student Loan Payments to Resume Feb. 1, 2022

Local News

ELMIRA, N.Y. (WETM) – After a nearly two-year pause because of the Coronavirus Pandemic, federal student loan payments, and the interest accrued with them, will resume come Feb. 1, 2022.

Payments have been on pause since March 27, 2020, with the interest rate set at 0-percent. Several politicians, including Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren, have called on the federal government to halt payments for a fourth time, advocating that many borrowers are not financially able to begin paying again.

Several members of Congress, including New York’s Alexandria Ocasio-Cortez, have called on the government to erase student loans altogether.

Despite this, White House Press Secretary Jen Psaki said payments will resume as planned in February. She also stated the Biden Administration “will engage directly with federal student loan borrowers to ensure they have the resources they need and are in the appropriate repayment plan” and that they are “still assessing the impact of the Omicron variant.”

Millions of students, including 2020 Elmira College graduate Elizabeth Foster, finished their degree and accumulated thousands in student loan debt.

“I haven’t been making any payments on them right now, mostly because I’m in law school now,” Foster said. “[But] I have new loans for grad school now. I’m really not looking forward to having to deal with that once I graduate.”

Matthew Burr, an Assistant Professor of Business Administration at Elmira College, recommends that students who are unable to pay back their debt reach out to their loan provider.

“If you can’t make a payment, call and ask and see if there’s anything you can apply for,” Burr said. “{There might be] ways to make minimum payments or reduce minimum payments.”

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