This is the million-dollar question. For almost two years now, millions of Americans have not paid a single dime toward their federal student loan debt. No principal payments, no interest payments, nothing. Moreover, borrowers who were in default prior to the pandemic have not received a phone call, text, or email from a collections agency since March 2020.
This will end on May 1, 2022. Despite the advance warning, I think resuming student loan payments is going to be a shock to the system for many. Covid has shifted our mindsets, our understanding of time versus money, and the American economy at large. So, the truth is, I can’t say what is going to happen when student loans unpause — we will all just have to wait and see.