Student loan payments to resume Oct. 1 after three-year pause
Payments are resuming nearly three months after the Supreme Court struck down President Biden’s student loan forgiveness program.
NASHVILLE, Tenn. (WSMV) - Millions of Americans will start making federal student loan payments in October after a three-year pause.
However, for the next year, a grace period will keep borrowers from having their credit score damaged if they miss a payment. That “on-ramp period,” as referred to by the Biden administration, expires Sept. 30, 2024. Borrowers will not be off the hook entirely because interest will still accrue.
Student loan payments are resuming nearly three months after the Supreme Court struck down President Biden’s student loan forgiveness program.
“It would have wiped out a significant chunk of my loans, so it was very exciting for that possibility to happen,” Amanda Matsui, who needed loans to go to art school, said.
There are new income-driven repayment plans, like the Saving on a Valuable Education (SAVE) plan.
For more information, check out the U.S. Department of Education’s website.
Copyright 2023 WSMV. All rights reserved.
