Student Loan Repayment Holiday: What You Need To Know In 2023
Student Loan Repayment Holiday: What You Need to Know in 2023
What is a Student Loan Repayment Holiday?
A student loan repayment holiday is a period of time when borrowers can temporarily suspend making payments on their student loan payments. During this time, no interest will accumulate on the loan and no payments will need to be made. This can be a great relief for borrowers who are facing financial hardship, are taking a break from their studies, or are unable to make payments due to other circumstances.
When is the Student Loan Repayment Holiday?
The student loan repayment holiday will begin on January 1, 2023 and will run until December 31, 2023. This means that borrowers will not have to make any payments on their student loans during this period of time.
Who is Eligible for the Student Loan Repayment Holiday?
In order to be eligible for the student loan repayment holiday, borrowers must meet the following criteria:
- Must have outstanding student loan debt from an accredited institution.
- Must be current on all student loan payments.
- Must not have any delinquent payments on their student loans.
How Can Borrowers Take Advantage of the Student Loan Repayment Holiday?
In order to take advantage of the student loan repayment holiday, borrowers must contact their loan servicer and provide proof of eligibility. Once the loan servicer has verified the borrower’s eligibility, they will inform the borrower of the necessary steps to take in order to suspend payments during the period of the student loan repayment holiday.
What Happens After the Student Loan Repayment Holiday?
After the student loan repayment holiday ends on December 31, 2023, borrowers will need to resume making payments on their student loans. Any accrued interest during the repayment holiday will be added to the balance of the loan, meaning that borrowers should expect their loan balances to be slightly higher after the repayment holiday ends.
Conclusion
The student loan repayment holiday is a great opportunity for borrowers who are struggling to make payments on their student loans. By taking advantage of this opportunity, borrowers can get a break from making payments and can avoid accumulating interest on their loans during the period of the repayment holiday.
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