CARES Act Update

We’re Here to Help.

A Message From Our CEO

As you may be aware, the Biden Administration has extended the pause on federal student loan repayments until January 31, 2022. The administration characterized this as the “final” extension of student loan relief and a chance to “give students and borrowers the time they need.” This development provides federal student loan borrower’s with clarity about what’s happening and what their options are.

In practice, this means loan payments, interest, and collections will continue to be paused until January 31, 2022. This affects all loans held by the U.S. Department of Education, but doesn’t impact private loans.

We’ve addressed some of the most frequently asked questions about the announcement on this page. Splash Customer Success team members are available Monday–Friday from 9 a.m. to 9 p.m. EST to answer your calls and emails.

We are dedicated to maintaining strong customer support levels and helping everyone who desires to refinance as best we can. Most important, we hope you stay safe and healthy throughout this challenging time.

Signature of Steven Muszynski
—Steven Muszynski, CEO

Common Questions Related to CARES Act and Student Loans

We will update the information here as the situation evolves.

Although your payments will likely resume on February 1, 2022, you could still save by refinancing. Keep in mind that loans refinanced through a private lender are ineligible for federal benefits. Please feel free to call us at (800) 349-3938 if you have questions. Check your rate without affecting your credit score.1

What did President Biden say about extending the student loan payment freeze?

“My administration is extending the pause on federal student loan repayments one final time until January 31, 2022. This will give the Department of Education and borrowers more time and more certainty as they prepare to restart student loan payments. It will also ensure a smoother transition that minimizes loan defaults and delinquencies that hurt families and undermine our economic recovery.” Statement from President Biden’s statement on pausing federal student loan repayments, August 6, 2021.

What happens when federal student loan relief ends?

When the moratorium on federal student loan payments ends on January 31, 2022, payments and interest rates will likely return to what they were prior to March 13, 2020, when the moratorium was first implemented.

If I refinance today, will my rate ever change?

It always depends on the type of rate you choose. If you refinance today to a fixed interest rate, you lock in the rate for the life of your loan. That means you would have a reliable monthly payment that doesn’t fluctuate. But if interest rates drop, you may be able to refinance again if you qualify. If you refinance to a variable rate, the rate is subject to change.

What happens if I refinance now and then rates change?

If you refinance today and then rates soon change, there is no penalty or fee to refinance again. However, refinancing again may impact your credit score because it will require another hard credit pull.1

Are there any programs to help private student loan borrowers who are experiencing temporary financial problems?

Most private student loan programs offer some options for distressed borrowers to reduce or temporarily suspend their loan payments.

Questions? Please reach out to us.

Our hours are Monday through Friday, 9 am to 9pm Eastern
(800) 349-3938
contact@splashfinancial.com