How the payment pause is affecting universities
PEORIA (25 News Now) - Student loan borrowers across the nation have been on a payment pause since the early days of the COVID-19 pandemic.
For the past two years, their loans haven’t been accruing interest. Whether or not they made payments was up to individual borrowers. Where does that leave universities?
The tuition is the reason the student loan exists, but the Director of Financial Assistance at Bradley University Abbi Gashaw said they haven’t been affected by any payment pause. they don’t anticipate any negative effects from loan forgiveness, either, should that happen.
“Bradley obtains the funds from the lender ... and applies them to any outstanding tuition, fees, room, and board costs the student may have,” Gashaw said. “Since Bradley obtains the funds on the first day of class we are not losing any revenue if the student doesn’t repay the loan or it is forgiven.”
The payment pause is set to end August 31. the White House has hinted at an announcement regarding student loans but no official announcement has been made yet.
Barring any changes, loans will start gathering interest again after the pause expires.
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