The federal student loan interest resumed following the three-year pause due to the pandemic.
Resumption of Federal Student Loan Interest Continues Following Three-Year Pause Due to Pandemic
Under Biden’s administration loan repayment plans, the resumption of federal student loan interest continued following the three-year pause due to the pandemic, wherein the federal student loan interest would rapidly increase student loan borrowers’ debts depending on how they repay each month.
According to a report published in My Panhandle, the resumption of the federal student loan interest would affect loan borrowers struggling to meet their daily basic needs, making it harder for them to pay their student debts and the increasing federal student loan interest and struggle even more financially.
With the increasing federal student loan interest, loan borrowers are encouraged to always check their online accounts to know the monthly payment amount and the current rate of their federal student loan interest to be aware and avoid scams.
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Some Ways for Student Loan Borrowers to Lower Their Federal Student Loan Interest Following Its Resumption
Following the resumption of the federal student loan interest, there are some ways that loan borrowers could lower their federal student loan interest rate, including applying for effective repayment plans such as the SAVE plan, an income-driven repayment plan.
Through the SAVE plan, loan borrowers could prevent the federal student loan interest from increasing more, which would help them save more money, ABC News reported.