For the more than 42 million borrowers with federal student loans, the Covid-19 pandemic brought unexpected relief: a break from payments. The pause on interest accumulation alone has saved borrowers roughly $4.8 billion a month, according to the Education Department.
Last March the department put most federal student-loan payments on hold and set interest rates to zero. One year and three stimulus bills later, the Biden administration extended the payment suspension and interest waiver until Sept. 30.
As a result, close to 20 million borrowers currently have their loans in forbearance, according to Mark Kantrowitz, author of “How to
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