The findings are surprising, because the Education Department recently extended its pandemic-era 0% interest policy—as well as a suspension on student loan payments—to Jan. 31, 2022 from Sept. 30 in order to give borrowers more time to get their financial house in order. About 26 million borrowers have not had to make payments on their federal student loans thanks to the relief program, according to department data, and interest has not accrued on student loans since March 2020 for approximately 41 million borrowers. Many borrowers have pinned their hopes on President Joe Biden or Congress wiping out at least some of their loans by offering blanket student debt cancellation. That isn’t likely to happen, but it hasn’t stopped some people from not paying their loans at all during the pandemic lest the government swoop in with forgiveness later, Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, said earlier this year. Borrowers shouldn’t change their behavior due to impending government actions, Mayotte advised. Have a question, comment, or story to share? You can reach Rob at ranthes@thebalance.com.
