Millions of Americans with student loans are about to face a financial reality check as the pause on student loan payments, which began in March of 2020, ends on October 1.
This pause was initially implemented as part of a series of pandemic-related economic relief measures. While the relief provided some respite to borrowers, Congress earlier this year blocked further extensions, signaling the impending resumption of payments.
Student Loan Payment Pause Extension
The pause on student loan payments was extended multiple times, leading some to wonder if a government shutdown might further delay the requirement.
However, the Education Department clarified that this was not the case, as loan servicers would continue processing payments. Congress voted to extend government funding on a recent Saturday, averting a shutdown, at least for now.
So, when exactly are student loan payments due? Federal officials have confirmed that payments will be due starting in October. You should have received a billing statement or notice at least 21 days prior to the due date. If you haven’t received a billing notice, it’s crucial to contact your student loan servicer promptly.
Read more: Americans Face Repayment Difficulties With Inflated Credit Scores And Pandemic Loans
Exploring Alternate Repayment Plans
Additionally, it’s important to know that while payments are officially due in October, interest started accruing on these loans as of September 1.
For borrowers, it’s essential to confirm who their loan servicer is since some changes occurred during the pandemic. The entity that managed your loan before March 2020 may not be the same one handling it now. You can determine your loan servicer by logging into your Federal Student Aid account and checking the “My Loan Servicers” link.
If you’ve recently moved, don’t forget to update your contact information with your loan servicer to ensure they can reach you. Over three years have passed since the last time loan payments were due, and your information might need an update.
Furthermore, borrowers should explore the available repayment plans. While the standard repayment plan is automatically assigned, it might not be the most financially feasible option.
There are alternatives, such as the Saving on a Valuable Education (SAVE) plan, an income-based repayment option from the Biden administration, which can significantly reduce or eliminate monthly loan payments for many borrowers. You can apply for SAVE on the Education Department’s website.
Read more: IDF Announces Release Of 2 American Hostages Held Since Hamas Attack
