The Department of Education’s three-year loan pause is ending August 31, 2023 and payments will resume starting September 1, 2023. The United States Supreme Court ruled that the Federal Student Loan Debt Cancellation Program cannot move forward. As a result, all students not attending an institution at least half-time need to prepare to start making payments.
In an attempt to provide relief to borrowers struggling to make payments the administration announced the SAVE (Saving on A Valuable Education) Plan which is a new income-driven repayment plan. This and other repayment plans can be applied for and discussed with your federal student loan servicer.
The Department of Education is also instituting a 12-month “on-ramp” to repayment. Under this plan vulnerable borrowers who miss payments between October 1, 2023 and September 30, 2024 will not be considered delinquent, placed in default, referred to collection agencies, or reported to credit bureaus. You can read the White House’s fact sheet here: FACT SHEET: President Biden Announces New Actions to Provide Debt Relief and Support for Student Loan Borrowers | The White House
To prepare for loan repayment to resume, please visit this site which includes 6 helpful tips:
The financial aid team is here to help, even if you’ve graduated! Reach out to firstname.lastname@example.org if you need any guidance.