Student Loan Bills Are Coming Soon: Heres What Borrowers Can Do to Prep
Nasdaq After a three-and-a-half-year pause, student loans are back: Millions of borrowers with federal student debt will be getting a loan bill in the coming weeks.
Interest on most federal student loans began accruing again Friday, and loan servicers will be sending out bills in September with due dates in October, according to Scott Buchanan, executive director at the Student Loan Servicing Alliance.
Many borrowers who were counting on loan forgiveness to reduce or eliminate their payments had those hopes quashed with the Supreme Courts June decision to strike down President Joe Bidens plan. That plan would have cut the number of borrowers re-entering repayment this fall. Instead, loan servicers are now resuming payments for nearly 40 million borrowers, a colossal undertaking.
To help ease borrowers back into repayment, the administration has launched a new, more affordable repayment plan and temporarily removed the most severe consequences of missing payments.
People do have options and they do now have a more affordable repayment plan option than they would have had before the payment pause took effect, says Victoria Jackson, assistant director of higher education policy at the Education Trust, a research and advocacy organization focused on educational outcomes.
