Student Loan Payments Set to Resume. Here’s How to Get Ahead of the Curve.

After a three-year pause, the pandemic related federal student loan moratorium will end, and payments will resume. Loans will begin accruing interest starting September 1, 2023. Borrowers are expected to restart paying their federal student loans in October 2023. Before repayment begins, develop a plan that puts you on track to pay back your loan on time and in full.

How to Start Preparing 
 

1. Secure a list of your loans, the amount owed, the interest rate, and the repayment terms. Having this information on-hand can help you stay organized.
2. Create a budget of your monthly expenses and other debt obligations.
3. Adjust your spending now, if necessary, to allow for the coming payments.
4. Log in to your account(s) and make sure contact details and payment methods are up to date on your service provider’s website.
5. Reserve your spot at Greenpath’s Webinar. This webinar will go over what actions to take to prepare for student loan payments resuming in October, as well as what to do if you’re concerned about making payments. Click here to learn more.
6. Contact your service provider if you are uncertain about your ability to pay.

Learn About Your Repayment Options

Research options for loan consolidation or refinancing that could help you save money. As a federal student loan borrower, you have rights that are not typically available with private loans. Refinancing your federal student loans into a private loan can sometimes lower your interest rate, but it won't necessarily have the same terms and conditions.

If you own a home and have additional loan debt, credit cards, auto loans, etc., a debt consolidation refinance could provide the cashflow or breathing room you need to make your student loan payments. If you are considering consolidating your debt, click here to speak to one of our specialists.

What if I Cannot Repay my Student Loans?

For borrowers who are presently unable to make their payments, the U.S. Department of Education is creating a temporary “on-ramp” period over the next year that will help borrowers avoid the harsh consequences of unpaid, partial, or late payments.

According to the office of the U.S. Department of Education, payments that are missed, partial, or late will not affect credit, default, or collections.

Borrowers who can make payments should do so, as payments will be due and interest will accrue during this on-ramp period. For more information about the on-ramp period, click here.

Any missed payments will not count toward loan forgiveness under income-driven repayment plans or Public Service Loan Forgiveness.