What’s Ahead for Borrowers?
After almost three years, the student loan payment pause officially ended on September 1st. Borrowers will start receiving their first bills in September, due sometime in October, with the bills arriving at least three weeks before they are due.
In recent weeks, NCLC has heard from numerous borrowers who are worried about repayments resuming. Advocates and borrowers have reported issues with loan servicers providing incorrect payment information, long call-wait times, and processing paperwork incorrectly.
If you are experiencing problems with your loan servicer or are concerned about repayment, we encourage you to share your story with us today so that we can accurately inform lawmakers about the challenges faced by borrowers. You can also file a complaint with the Department of Education’s Student Loan Ombudsman Office to seek resolution for your issue and report problems directly to the Department of Education.
How is the Department of Education Assisting Borrowers?
Despite the Supreme Court’s rejection of President Biden’s cancellation plan and the resumption of loan repayments, the Department of Education offers relief options to make the transition easier for borrowers who may not be ready to resume repayments. Here are some programs the Department is currently offering to aid borrowers:
- The new SAVE plan – helping many borrowers lower their monthly student loan payments and get closer to loan cancellation.
- The one-time payment count adjustment – helping borrowers progress towards student loan forgiveness through income-driven repayment or Public Service Loan Forgiveness programs.
- Fresh Start for borrowers in default – borrowers can quickly and easily remove their loans from default for a limited time.
- Special on-ramp period for borrowers who can’t make payments yet – borrowers missing payments during this period won’t be considered delinquent, default, or referred to collection agencies (while interest will still accrue on loans).
What’s Next for Student Loan Cancellation?
The Department of Education is developing a new student loan debt relief plan following the Supreme Court’s rejection of President Biden’s original plan in June. Meanwhile, borrowers should explore other cancellation programs that are still available as they may be eligible for cancellation or loan forgiveness under those programs.
Exploring the new SAVE Plan
The new SAVE plan, introduced this summer, offers borrowers a new way to save more on their student loan payments while working towards having their loans canceled or forgiven sooner. Under the SAVE plan, borrowers may qualify for lower monthly payments based on their income and household size, with loan balances not increasing while payments are made. Borrowers are encouraged to use the Department of Education’s Loan Simulator Tool to determine if the SAVE plan is the best option for them or if another repayment plan would be a better fit.
Where Can I Obtain Additional Information on Resuming Repayments?
For further guidance on preparing for the resumption of student loan payments, see our Return to Repayment page and utilize the checklist below.
Your Return to Repayment Checklist
- Check your current loan information on StudentAid.Gov.
- Update your contact information with your loan servicers and the Department of Education.
- Determine if you are eligible to have your loans canceled or forgiven.
- Obtain a Fresh Start on student loans in default.
- Select a payment plan that suits your needs—consider an IDR plan like the new SAVE plan.
- Consider enrolling in auto-debit payments to lower your interest rate and simplify payment management.
- Consider consolidating FFEL, HEAL, & Perkins loans to benefit from the payment account adjustment and become eligible for the SAVE plan.
- Beware of scams!
- Seek personalized assistance to address your loan situation.
