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A Message From Our CEO
On December 22, 2021, the Biden Administration announced that it was extending the pause on federal student loan repayments through May 1, 2022.
Earlier this year, the administration had announced that the pause would end on January 31, 2022. The administration characterized that pause as the “final” extension of student loan relief and a chance to “give students and borrowers the time they need.”
This latest development provides federal student loan borrowers 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 through May 1, 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.
—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 in May 2022, you could still save by refinancing. Federal student loans carry special benefits. If you refinance a federal student loan with Splash Financial, you will no longer be eligible for those benefits such as a COVID-19 temporary interest rate of 0% until 05/01/2022, public service loan forgiveness, and economic hardship programs, fee waivers and rebates on the principal. 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?
President Biden’s statement on pausing federal student loan repayments, December 22, 2021
“Today my Administration is extending the pause on federal student loan repayments for an additional 90 days — through May 1, 2022 — as we manage the ongoing pandemic and further strengthen our economic recovery.
Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.”
What happens when federal student loan relief ends?
When the moratorium on federal student loan payments ends, 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.