But, When Do Student Loan Payments Resume? Let’s get to it immediately!
The US Department of Education announced in November that students may not be required to pay until as late as summer 2023.
However, if the Supreme Court rules on President Biden’s plan to cancel up to $20,000 in student debt per borrower before then, forbearance could end sooner. Oral arguments are currently scheduled for February 28.
When Do Student Loan Payments Resume for 2023?
According the Federal Students Aid, the suspension of student loan payments is extended until the US Department of Education is allowed to implement the debt relief program or the litigation is resolved. Payments will resume after 60 days. If the debt relief program is not implemented and the litigation is not settled by June 30, 2023, payments will be resumed 60 days later. Before payments resume, we will notify borrowers.
- How to apply for Student Loan Trust Fund (SLTF)
- How to apply for a Citizens Bank Student Loan
- SAAS Student Loan/Funding Application [Eligibility, How to Apply]
How To Qualify for the Students Loan payment
Here are four steps to take to ensure you’re ready to resume student loan payments:
- Update your contact information on your loan servicer’s website as well as your StudentAid.gov profile.
- Check your existing auto-debit enrollment or sign up for the first time. Log in to your loan servicer’s website or contact your loan servicer directly to do so.
- Loan Simulator can help you find a repayment plan that meets your needs and goals, as well as decide whether to consolidate.
- Consider applying for an IDR plan (income-driven repayment). Depending on your income and family size, an IDR plan may make your payments more affordable.
- Student Loan Company Email [SLC Contact Email Address]
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Start Making Plans for Repayment
Start planning for repayment now, regardless of how you handle the remaining forbearance period. If the Supreme Court rules on Biden’s debt cancellation plan before June 30, the pause could end sooner.
“Practice making these payments right now,” says Kristen Ahlenius, director of education at Your Money Line, a company that provides workplace financial wellness. “Take the equivalent of what you would pay toward your student loans and use these funds to increase your emergency fund or pay off some other liabilities. You’ll be prepared if student loan forgiveness is denied, and you’ll improve your financial health in the meantime.”
Call your loan provider to confirm the amount of your monthly payments. If there is a cancellation, this amount may be reduced, but it is best to plan for the worst.
If you won’t be able to cover the entire amount, inquire about an income-driven repayment plan. These plans limit your monthly payments to a certain percentage of your disposable income, making them more manageable while also extending the life of your loan. If your income is sufficiently low, your payments may be zero. A revised IDR plan with even more generous terms is expected later this year.
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