Federal Student Loan Updates
Loan Payments to Resume in October 2023
Student loan interest will begin to accrue on Sept. 1 and payments will restart in October 2023. For frequently asked questions and guidance on how to prepare, review the recent Federal Student Aid Announcement.
New Federal Student Loan “On-ramp” to Repayment
The U.S. Department of Education instituted a temporary, 12-month “on-ramp” to federal student loan repayment for financially vulnerable borrowers from October 1, 2023 to September 30, 2024. The on-ramp will help borrowers avoid default and harm to their credit ratings but is not the same as the student loan pause because monthly payments will still be due and loan interest will continue to accrue.
For more information regarding Federal Student Loans, review the U.S. Department of Education FACT SHEET, issued June 30, 2023.
Reduction of Federal Loan Payments through the New SAVE Plan
The newly finalized SAVE (Saving on a Valuable Education) plan is the most affordable Federal student loan repayment plan ever created. It is an income-driven repayment plan that will “cut borrowers’ monthly payments in half, help the typical borrower save more than $1,000 per year on payments, allow many borrowers to make $0 monthly payments, and ensure borrowers don’t see their balances grow from unpaid interest.” For more information, review SAVE Website.
Additional Federal Student Loan Debt Relief Measures
Federal regulatory changes to provide additional student loan debt relief are on the way. For more information, review the negotiated rulemaking document.