Reasons to Pay Student Loans Amid the Pandemic – US News & World Report
- February 15, 2021
- By: Greenpath Financial Wellness
GreenPath shares with U.S. News and World Report Student Loan Ranger reasons to continue making monthly payments on your federal student loans if your budget allows.
A lengthy reprieve from paying a student loan bill with no penalty? What could beat that?
Last month, the Biden administration announced that coronavirus pandemic relief originally enacted under the CARES Act in March 2020 will be extended, giving most federal student loan borrowers additional bill-paying breathing room through Sept. 30, 2021.
This is great news for tens of millions of borrowers. One less bill during challenging times can provide genuine financial relief. However, if you have been fortunate enough to have steady income through this crisis, there are real benefits to still making payments and being ahead of the game once student loan payments are required again.
5 Reasons To Continue to Pay
US News & World Report offered five benefits for continuing to pay on federal student loans during the forbearance period.
- Quicker debt payoff — Making payments while your student loan is not accruing interest chips away at the principal.
- Reduced interest — A lower principle balance reduces the amount of interest you pay over the long term.
- Improved credit —Having a lower debt load helps to improve your credit score.
- Improved financial health — Having less overall debt helps to improve your financial health, reduces stress, and makes financial goals easier to achieve.
- Budget management — Continuing to make payments helps to maintain discipline and manage cash flow.
We Are Here To Support You
Our financial counselors are available to talk. They can help you figure out a plan to manage student loans, now that payment pauses have been extended again. Our trusted NFCC-certified student loan counselors will walk through your whole financial picture to help you identify options that can relieve stress and make it easier to bounce back.