Steps to Take
The good news is that the pause on payments is automatic. If you have a federally backed student loan, you are all set. However, it’s still a good idea to double-check your own individual situation. You don’t want to suddenly have bills in September that you weren’t anticipating. Some financial experts believe that the confusion between the multiple relief acts may cause loan providers to make mistakes. So make sure you know exactly what the payment status of your loan in, and when payments are required again.
Hopefully this extension allows you to get your finances on a more solid ground. After the global economic shutdown left the U.S. facing record unemployment, many borrowers are still struggling to pay their obligations. Try to use this extra relief to pay down high interest debt or build your emergency fund. If you already accomplished those things, consider using any extra money to invest while the markets are still recovering.