Moratorium Will Save Borrowers Average of $6,949
While the coronavirus pandemic has posed financial challenges for many over the past nearly two years, student loan borrowers have enjoyed some relief in this period. In March 2020, the government paused student loan payments and interest on eligible federal loans.
Since then, the student loan moratorium has been extended five times, most recently through May 1, 2022. (UPDATE: The moratorium in early April was extended for a sixth time, through Aug. 31, but this study was based on the May 1 end to the pause.) This long-term, zero-interest forbearance is resulting in major savings for borrowers — $145 billion in total, according to Student Loan Hero researchers.
Analysts estimate the typical borrower in active repayment will have kept $6,949 that would have otherw...