Following the extension of student loan moratorium, expert says to plan ahead for upcoming payments

$10,000 in debt cancelled for those making under $125,000 yearly

InvestigateTV - President Biden on Wednesday extended the moratorium on student loan payments and canceled $10,000 in debt for borrowers making $125,000 a year or less.

This extension gives borrowers more time to plan for the different loan forgiveness programs and repayment options available.

Robert Farrington, CEO of The College Investor, said about half of all student loan borrowers have had their loan service change over the last two years. “This extra extension will allow borrowers to get organized, figure out who owns their loans these days, where they should be making their payments and ensuring that they have enough time to prepare for when payments do restart,” Farrington said.

Farrington advised borrowers to go to their loan servicer’s website and to ensure their information is correct, including updating addresses, phone numbers, or anything else that has changed.

If you are unsure who your loan servicer is, you can go to studentaid.gov and enter your information to find out. Farrington suggested creating a new budget setting aside money now for when payments resume.

To apply for Public Service Loan Forgiveness (PSLF), go to studentaid.gov before October 31. 2022.

Rachel DePompa

Rachel DePompa

Rachel DePompa is NBC12's On Your Side Investigator. Before joining WWBT in March of 2008 Rachel worked in Roanoke, Bristol and Harrisonburg.