What the Student Loan Payment Relief Extension Means for You

Student loan. 3D Animation Production Company/Pixabay

You guys, we all know 2020 was insane. But here’s some good news: You may not need to make student loan payments until October of this year because the student loan relief that came from the CARES Act has been extended through Sept. 30, 2021. Let’s talk about what this actually means so you know what’s happening, and so you can get that student loan debt out of your life for good.

What Did the CARES Act Do?

The CARES Act (or Coronavirus Aid, Relief, and Economic Security Act) was a stimulus bill passed by Congress in the early days of the COVID-19 pandemic to help the economy (and a lot of Americans) get back up and running. The CARES Act offered temporary payment suspension, a zero percent interest rate on student loans, and a hold on all collections and wage garnishments—or money taken out of the borrower’s paycheck to repay the loan—on defaulted loans.

Once it expired, then-President Donald Trump extended student loan relief until Jan. 31, 2021. But now that President Joe Biden is in office, he’s extended it again until Sept. 30, 2021. So, what does that mean for you and your loans?

What Will the Student Loan Payment Relief Extension Do?

First, let’s clear something up: This isn’t the same thing as a student loan forgiveness plan. You’ll still have to pay the full amount of your student loans eventually unless some other policy or relief package is put into place.