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Student loan moratorium: what to keep in mind

EAST PEORIA (WEEK) -- Earlier this month, the Biden Administration extended the moratorium on student loan payments to January 31st. So what should students and graduates do to make sure they're not caught off guard?

First, the moratorium only applies to federally held student loans. Private loans do not qualify. Secondly, you do not need to enroll or sign up for the program. If you have a loan that qualifies, payments will be suspended and interest will not accumulate. And with like many programs, scammers are already trying to take advantage of people. Lynne Baker, with the Illinois Student Assistance Commission, described one of the typical tricks.

"If you pay us, we'll help you figure our new repayment options…this is automatic relief, you don't have to pay for anything," she said.

To find out if your loan qualifies for relief, contact the company servicing the loan or call the Federal Student Aid Information Center at 1-800-433-3243.

Andy Weber

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