"Over the past three and a half years, the Biden and Trump administrations extended the student loan payment pause multiple times, freeing federal student loan borrowers from payments and interest accrual. But if you have federal student loans, interest began accruing in September, and your payments will resume in October," Fortune reports.

..."While these plans can lower your monthly payments, asking for help choosing a plan is wise. 'Borrowers can always speak with their student loan servicer about payment options,' says Rachel Rotunda, director of government relations at the National Association of Student Financial Aid Administrators, a nonprofit organization.

If you want a preview of your payment under any of the IDR plans, Rotunda suggests using the loan simulator on StudentAid.gov; this simulator offers a preview of your monthly payment for each possible IDR plan."

..."Now, you have a set of tools and resources to help ease your federal student loans from pause to the repayment phase. The number one thing to remember is that there’s help to answer your questions, potentially lower your payments, and put you on a path toward eventual loan forgiveness.

And if you need help from your servicer, Rotunda recommends reaching out as soon as possible.

'This is really something that has never happened before, where we have tens of millions of borrowers re-entering their repayments around the same time,' says Rotunda. 'That significant influx of borrowers is going to add a lot of strain to the servicers as a result where it’s likely that borrowers will experience extended wait times if they’re trying to reach out via phone.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 9/29/2023