US shutdown 2023: How will it impact 40 million Americans who have to restart student loan repayment?
Repayment to be disrupted?
But he also expressed concern that a prolonged shutdown that may last more than a few weeks, could disrupt the return to repayment efforts. Earlier, the federal government created a 12-month on-ramp during which borrowers will be immune from penalties if they miss payments.
What to do with loans during the shutdown?
The Federal Student Aid Information Center will be closed if there is a government shutdown. In this situation, the borrowers can get information they need about their payment plan, FASFA form, or other services from their loan servicers or at studentaid.gov. But those people who have applied for final loan forgiveness through the Public Service Loan Forgiveness program will see delays during a shutdown.
Will the Biden administration pause debt repayment?
Considering the grim situation where the students may have to face difficulties, some people have urged the Joe Biden administration to pause loan repayment once again.
Braxton Brewington, spokesperson for the Debt Collective, said in a statement that the interest and payments on federal student debt should come to a halt if there is a government shutdown. Melissa Byrne, executive director of 'WeThe45Million', has warned the government that the student loan payments and the subsequent economic slowdown of a government shutdown will have a real impact on the personal finances of millions of Americans.
FAQs:
Q1. What has the administration said about the loan repayment?
A1. White House and Education Department officials have said that the repayment process will go ahead as planned earlier in spite of the possible government shutdown.
Q2. When will the loan repayment begin?
A2. The loan repayment will restart on
