Student Loan Payments Resume

Financial Planning General

August 30, 2021

It has been over three years since student loan payments were paused due to the pandemic. Now that the pause is coming to an end, here are a few key things to know if you or a loved one has a student loan:

• Interest begins accruing on 9/1/23.
• Payments resume in October. Your specific due date may vary depending on your service provider.
• Biden has proposed an “on ramp” transition period. During this 12-month period:
  • • Missed monthly payments will not be considered delinquent, placed in default, or reported to credit bureaus.
    • Interest will continue to accrue during this period whether a payment is missed or not.
• Income-Based Repayment (IBR) plans are available, including the new “SAVE” plan.
  • • Read more about IBR plans and which one might be right for you here: https://studentaid.gov/manage-loans/repayment/plans/income-driven.

For additional information about student loans and repayment plans, contact your student loan servicer or go to https://studentaid.gov/.