Student loan payments set to resume for the first time in three years
44 million Americans have student loan debt
(InvestigateTV) — The U.S. Department of Education’s COVID-19 relief for student loans will end later this year, with the first payment scheduled for October after a nearly three-year reprieve. Interest on student loans will begin accruing September first.
Robert Farrington, the founder and CEO of The College Investor, recommended borrowers log in to their loan servicer’s website or go to StudentAid.gov to check the status of their account.
“This will also help you understand what you need to know for repayment. Maybe you need to select a new repayment plan that you can afford that’s more reasonable,” Farrington explained. “Or if you’re on an income driven repayment plan, you might need to recertify your income, especially if it’s been about three years.”
Farrington’s bottom line is that debt holders need to know exactly what their payment will be so they can plan.
He added that those who have been in delinquency or default might be able to qualify for Fresh Start, a one-time, temporary opportunity to get out of default.
“And I would remind everyone to look for loan forgiveness options on their student loan. So, if you work in public service, for example, you might need to certify your public service employment. Make sure you’re on that income driven repayment plan so that all your payments count for that future loan forgiveness,” Farrington said.
The College Investor has a complete guide for borrowers on the restart of student loan repayment.
StudentAid.gov also has comprehensive information on how to prepare for the restart of payments, plus a guide for those who are repaying student loans for the first time.
Copyright 2023 Gray Media Group, Inc. All rights reserved.
