Starting in January of 2023 student loan servicers are expected to resume the monthly collection of payments from all student loan borrowers.
In March of 2020, the CARES Act (Coronavirus Aid, Relief and Economic Security Act) placed federal student loans on “holiday” for a limited time pause, to offer financial relief to many people across the United States. Since then, borrowers have not been required to make a monthly payment and have not had interest accrue on their loans. Now this COVID-19 emergency relief measure is scheduled to end on December 31, 2022. While each borrower’s monthly payment will differ based on their balance, interest rate, and amortization schedule, the average student loan borrower will be required to pay about $250/month starting January 2023.
In today’s competitive market for talent, empathic employers are winning the best new hires and retaining valued team members longer. For employers looking to stand out in 2023, the resumption of student loan payments represents an opportunity to show college-educated workers that your organization understands their interests and will support them in addressing their challenges.
For companies large and small, there’s still time to act. Your Peanut Butter account can be set up today and your company’s program can be launched with about an hour of work time. We’re here to help you get started.