paying off student loan before forbearance is over
Hi Terry,
I have been making payments towards my federal student loans throughout the pandemic. It says all of the money is going towards the principal balance and not the interest. I will be able to pay the loan off entirely before May when the government forbearance is over. My understanding is that it will all go towards my principal. Will I have to pay any interest after that?
Terry Says
If you can pay off the entire balance, I suggest you do. With one caveat. Wait until late April to do it. There is still some discussion rumbling around about student loan forgiveness — maybe $10,000. I doubt that will happen before May 1st. And even if it happens in the future, after you’ve paid off your debt, you can feel great that you wiped it all out!! And once you do, there will be no more interest!
