10/01/2024
The pandemic-era student loan benefit ended yesterday, 9/30/24. So if you or someone you know has been in deferment since the pandemic this is what you need to know:
1. Stay Informed About Student Loans:
Consumers should log into studentaid.gov to review their account balances, update their contact and billing information, and contact their servicer with any questions.
2. Select a Repayment Plan:
If consumers do not choose a repayment plan, they will automatically be enrolled in the standard 10-year repayment plan. Exploring income-driven repayment (IDR) plans is highly recommended for those seeking more manageable payments.
3. Explore Deferment or Forbearance Options:
If consumers are struggling to make payments, deferment or forbearance options are available, allowing them to pause payments for up to three years.
**Key Updates:**
1. Loan Forgiveness:
The Court of Appeals has temporarily paused the next phase of President Biden’s loan forgiveness initiative for consumers with significant balances or long payment histories (20-25 years). The timeline for resolution remains uncertain.
2, SAVE Program Assurances:
Consumers enrolled in the SAVE program can rest assured that their benefits will not be abruptly revoked. Even amid ongoing legal challenges, the Department of Education retains the authority to introduce new repayment options.
It's vital for consumers who have missed payments to develop a plan for October, as entering student loan default after 270 days could lead to wage garnishments and additional fees.
