What Borrowers Need to Know
The 12-month grace period for student loan borrowers ended on September 30th, 2023. This period, implemented to ease the transition back to payments after the COVID-19 pandemic pause, has now concluded.
Delinquency: Missed payments can lead to loan delinquency, which can negatively impact your credit score.
After nine months of missed payments, loans can go into default. This can severely damage your credit score and lead to wage garnishment, tax refund seizure, and other negative consequences.
Income-driven repayment plans: These plans base your monthly payments on your income and family size, potentially lowering your payments.
These options allow you to temporarily suspend payments, although interest will still accrue.
If you work for a government or non-profit organization, you may be eligible for this program, which forgives your remaining debt after 10 years of qualifying payments.
Federal Student Aid website: Check your eligibility for income-driven repayment plans and other programs.
Get free legal assistance with student loan issues.
October 15th, 2023: Next court hearing regarding the SAVE plan, which could lower payments for millions of borrowers.
Missed payments can have serious consequences.
Explore options like income-driven repayment plans and deferment/forbearance if you're struggling.
Stay informed about the SAVE plan and other developments.