How to Pause Student Loan Payments: Student loans are a major financial burden for many college-goers. But they are also essential for allowing people to access higher education. Fortunately, there are options available for those struggling with their student loan payments. One of these options is the ability to pause payments, which can have a number of benefits for those who qualify. In this article, we will explore the advantages of pausing student loan payments, the considerations to make, and how to pause payments.
1. What are Student Loans?
Student loans are a type of loan taken out to cover the cost of higher education. They are typically taken out by students or their parents and must be repaid with interest once the student has finished their studies. Student loans can be a great way to finance higher education, but they can also be a major financial burden for students and their families.
2. Benefits of Pausing Payments
Pausing student loan payments can be beneficial for those struggling to make payments. It can provide temporary relief from payments, which can help ease the financial burden and provide more time to make alternative arrangements. It can also help those who are unemployed or underemployed to make ends meet while they look for a new job or wait for their income to increase.
3. Considerations to Make
While pausing student loan payments can be beneficial, it’s important to consider the potential long-term consequences. Interest will still accrue during the payment pause, meaning that the total amount owed will increase. This means that when payments resume, they may be higher than before. It’s also important to note that pausing payments can negatively affect credit scores.
4. How to Pause Student Loan Payments
Pausing student loan payments is a relatively straightforward process. In most cases, it can be done by contacting the loan servicer / provider and requesting a payment pause. Depending on the loan servicer, it may also be possible to pause payments online. It’s important to note that not all loans are eligible for a payment pause.
Pausing student loan payments can be a great way to provide temporary relief for those struggling to make payments. It can be beneficial for those who are unemployed or underemployed, And it can help ease the financial burden of student loans. However, it’s important to consider the potential long-term consequences before pausing payments, and to make sure that the loan is eligible for a payment pause.