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:
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- 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.
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- Income-Based Repayment (IBR) plans are available, including the new “SAVE” plan.
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- Read more about IBR plans and which one might be right for you here: https://studentaid.gov/manage-loans/repayment/plans/income-driven.
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For additional information about student loans and repayment plans, contact your student loan servicer or go to https://studentaid.gov/.
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