The long-awaited end of the federal student loan payment pause is finally here. After more than three years, interest will resume on September 1, 2023.
This is a significant change for borrowers, who have been able to forgo payments and interest on their loans since March 2020.
For many borrowers, the payment pause has been a financial lifeline, allowing them to save money or focus on other financial goals.
However, the end of the payment pause is also a reminder of the significant debt burden that many borrowers face. According to the Federal Reserve, the average student loan balance in the United States is now over $30,000.
For borrowers who are struggling to make payments, there are a number of options available. We can provide you with different repayment plans that can help borrowers lower their monthly payments. Borrowers may also be eligible for loan forgiveness or cancellation programs.
It is important to start planning for the resumption of student loan payments now. Borrowers should contact their servicer to get an estimate of their monthly payment and to learn about their repayment options.
Here are some tips for borrowers who are preparing for the resumption of student loan payments:
Get an estimate of your monthly payment. We can provide you with an estimate of your monthly payment based on your current loan balance and interest rate.
Review your repayment options. There are a number of repayment plans available, including income-driven repayment plans and extended repayment plans.
Start making payments now, if possible. Even if you don't have to start making payments until September, you may want to start making payments now to reduce the amount of interest that you accrue.
Contact us if you are struggling to make payments. We can work with your servicer to create a payment plan that you can afford.
The resumption of student loan payments is a significant change for borrowers. However, there are a number of resources available to help borrowers manage their debt. By starting to plan now, borrowers can be prepared for the resumption of payments and take steps to minimize their financial burden. Please contact us for a free discovery call Click Here