Two whole lifetimes ago in March 2020, the CARES Act paused federal student loan payments and set interest rates to 0%. As of this month, those loans have been frozen for two years — but they're currently scheduled to thaw in May. However, with gas prices surging and inflation on the rise, it still feels way too soon to add federal student loans back into the mix.
The Biden administration is reportedly considering extending the pause again, and has said that some form of student loan cancellation may still be possible. To show support for more student loan relief, we asked members of the BuzzFeed Community to share how the federal student loan pause has helped them so far. Here are their stories:
1. "My husband left me just before the pandemic lockdown. I had just started working for myself from home, and my bills doubled. I also had to purchase health insurance for myself. On top of which, I'm working to buy my ex out of our home, which means I have to save a tremendous amount of money. Oh, and I'm a single mother."
2. "The student loan freeze helped me tremendously in saving up for a down payment for our first home. We have continued to benefit from it by putting extra money towards remodeling and renovation of our home, which will boost the value of the home."
—Anonymous
3. "My student loan payments were higher than my mortgage, and it was a struggle to pay bills even with two incomes because my abusive spouse also controlled all the money. I saw no way out of an increasingly dangerous situation. We barely paid bills each month, and I couldn’t hide money for escape because every cent I was given went to bills."
"When the student loans paused, I was able to squirrel away money and save enough that I was able to flee my abusive spouse with my children. Because of the pause, we are safe and so, so much happier and healthier. I’m not sure how I will manage to make payments again when the loans resume, but I’m grateful that the pause allowed me to finally break free (and hopefully break the cycle of abuse for my kids) and improve our lives."
—Anonymous
Note: Financial abuse can occur alongside other forms of abuse or on its own, but it's one of the biggest reasons why people stay in abusive relationships. In spite of its devastating impact, financial abuse isn't talked about enough. Learn more about financial abuse and some organizations that can help.
4. "Without the pause, I wouldn't have been able to remove all my wisdom teeth last spring. They were becoming impacted and causing me pain every day. It cost me $4,500 out of pocket since I don't have insurance, and I was able to pay it off in six months."
5. "I am a teacher and have had to work a second job (sometimes a third in the summer) to afford life: rent, insurance, groceries, etc. The pause in student loans allowed me to put money back into the economy. I was also able to take the payment I would have made to student loans and pay down my credit card debt which accrued from being unable to get by during some rough months."
"Once that was more manageable, I was able to save to buy my first house. I was able to decrease my hours at my second job, which was mentally and physically draining me, having also worked 40+ hour weeks as a teacher. At 40 years old, I didn’t think it was ever going to be possible to afford a home. But if the pause ends in May, I’m going to have to increase my hours at my second job again, and I’m stressed about it every day."
—Anonymous
6. "I am a 64-year-old retired teacher. I paid off my personal loans years ago, but I took out Parent Plus Loans for my son. During this pause, I made a big, big sacrifice. My son’s loan balance was $5,000, and my balance was $22,000 on a Parent Plus loan. I have been paying on these loans since 2008. My monthly payments with the 6.75% interest rate had barely made a dent in the balances."
"During the forbearance, I made large monthly payments on my son’s loan and paid it off in September of 2020. The Parent Plus loan is now down to $11,000. I am currently paying $450 a month on that loan. It is a big sacrifice, but before, most of my payments were going towards interest. I know most people cannot do this, but the forbearance was a great opportunity to pay off and lower the loan balances. I’m hoping the Biden administration will continue with the forbearance so I will have an opportunity to pay down the loan even further. Without the forbearance, I had estimated I would be 80 years old before the loan was paid off. The Department of Education needs to do something about Parent Plus Loans."
—Anonymous
7. "Having the extra cash flow helped us pay the medical bill we received for having our first child."
8. "It helped me stay in my apartment and keep myself fed. Even before inflation, rent prices were skyrocketing in my city. I was barely making ends meet and going without meals because my loan payments were so high on top of my other necessity bills."
"Having a pause on loans has allowed me to actually pay my rent and mostly feed myself. Inflation hasn’t helped. I pay what I can to my loans, but if they were to start up again, I may end up homeless. I’m already working 60+ hours a week at a job that requires a four-year degree but pays just above minimum wage. I'm barely making ends meet."
—Anonymous
9. "Over the last few years, my husband and I had been struggling to be together again because we have different nationalities; people think if you marry someone foreign, they automatically get to move in with you, but that’s not true at all. It’s a lengthy and SUPER expensive process."
"I had to leave my husband behind right when the pandemic started and crash at family and friends' places until I could go home, but we had no way to know when that might be. I spent two years thinking it would just be another couple of months, and never knowing.
Because I thought I was going to be flying out any day, I couldn’t commit to a job. I lived off a small inheritance (less than $50k, much less) left to me by my grandpa who passed away from cancer in 2020. I used the money to feed myself and to cover the exorbitant immigration and legal costs, not to mention plane tickets. If I’d needed to make the ~$700 per month student loan payments during that time, I’d probably not be able to eat and definitely wouldn’t have been able to come home and be with my husband.
Of course, that wouldn’t be an issue if immigration laws were humane or fair, but since they aren’t, at least my student loans weren’t due for this time, and I could focus on getting home to my husband instead of trying to stay ahead of my student loans."
—Anonymous
10. "Thanks to the student loan pause I was able to pay off a combined $18,000 in credit card debt, an auto loan, and a personal loan from when the furnace in our home broke irreparably. Having this break from student loans has really made me feel like I have gotten my financial life back."
11. "I was able to afford my groceries without stressing to the max about whether I would have enough money to make it until the end of my paycheck. #workingineducation."
—Anonymous
12. "I was paying it off for a long time, and I felt like I never made a dent. And every few months, the payment amount would increase. I felt like I was suffocating, and all I could think was, 'This is impossible. I'm going to die with this debt, and there's nothing I can do about it but pay with the little money I have.'"
"But since it was paused, I was able to save so much money. I saved enough to really kick my small business into overdrive since I could now afford to buy the supplies I need more often. It felt like a huge weight was lifted off my chest, but with the deadline close to ending, I feel that weight again. I managed to save in the thousands, and you would think I would be able to pay it off now...but no. I still don't have enough. I feel like I'll never have enough."
13. "This student loan pause has provided significant financial freedom and security for me and my family. When the pause began in 2020, my job was not secure, and I ended up being furloughed for a short period. Not having the burden of student loan payments made it possible for me to survive that period of hardship where I was not being paid."
14. "The pause on student loans has been the best thing to come out of this pandemic. I paid off the rest of my car, totaling just under $20,000. I also saved enough to finally move out of my parents' house at 28 with a fully funded emergency fund and a good bit in my checking. Also upgraded my health insurance policy to finally go see a doctor and have scheduled surgeries for later this year. Lastly, I am contributing to my 401(k) now instead of putting money towards student loans. Looking back at everything I've achieved, I am very worried about having to start paying again. I'm constantly thinking about my loans."
—Anonymous
15. "Due to the student loan pause, I was able to pay off the private student loan debt I had, which had a much higher interest rate. One of my private loans had an interest rate of 11.75%!"
—Anonymous
16. "I was able to take some online courses and change the trajectory of my career. And I finally spent money on myself and my loved ones. But the best part of not having a payment was the amount of stress it has relieved for me! I was constantly worrying about my debt to the point of causing mental breakdowns. Not making the payment every month has helped my mental health immensely."
17. "I've been able to regain control of my life! My income-based repayment was a quarter of my take-home pay. I have been able to pay off other debt, thus freeing up more money, and without interest, I've been able to finally pay off my student loans. I am finally debt free."
—Anonymous
18. "I’ve been able to save money and put a down payment on a new car that I’m eagerly waiting for! My current car is 10 years old and is tiny. It also does not handle upper midwest winters well. Without student loan payments, I was able to save enough and upgrade to a SUV with better safety features."
—Anonymous
19. "I was able to pay off $26K in credit card debt, save for my dream wedding, and start a 'rainy day' savings account. Before, I was living mostly paycheck-to-paycheck and couldn't even dream of having a savings account."
20. "I graduated with about $70,000 in student loan debt. I hate owing this much money and sort of obsess over paying off my loans. I've worked hard at paying my loans off for years by taking second jobs and making sacrifices. I’ve paid more than half the principal, but the interest KILLS me (at this point I’ve paid almost $9,000 in interest)."
"When the pandemic hit, I had about $30,000 left on my student loans. I continued to make payments knowing that I would be paying directly to the principal balance. I work in healthcare and was fortunate that my employment was not impacted by the pandemic. I’ve paid about $10,000 during the student loan pause. It helps tremendously to not have to factor in interest.
Earlier this year, I got into a car accident and missed several months of work. Not having to make student loan payments has been a load off. Something needs to change. If Biden doesn’t forgive student loans, at least keep the pause going or change interest rates so we have a prayer at paying them off."
—Anonymous
21. And finally, "As a 2020 graduate, I was lucky enough to start a job that fall and make big payments interest free and pay off over a third (and close to half) of my student loans before my first payment is due. Now I’ve lowered my monthly minimum payment so much that I can have flexibility in other parts of my life in the future!"
—Anonymous
Now it's your turn: What have you been able to do during the student loan pause that you couldn't have done otherwise? And what would student loan cancellation mean for you? Share your experiences in the comments!
And for more stories about life and money, check out the rest of our personal finance posts.