ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Student Loan Repayment To Resume In October, Confirms Education Department

The Education Department posted on its website that "payments will be due starting in October."
UPDATED JAN 22, 2024
Cover Image Source: Pexels | Karolina Grabowska
Cover Image Source: Pexels | Karolina Grabowska

After a three-year-long pause on federal student loan payments, the Biden Administration has decided to resume the repayments. The Education Department posted on its website that "payments will be due starting in October".

It's going to take some time for borrowers to settle in after the significantly long break. As per CNBC, around 43 million Americans are set to return to repayment mode with the average bill being $350.

Cover Image Source: Pexels | Karolina Grabowska
: Pexels | Karolina Grabowska

Yes, the pause has been extended eight times since 2020. The pause was only meant to provide temporary relief but ended up getting extended sevral times. Borrowers who are worried about the payments can plan beforehand to ease into it. 

What Kind Of Student Loans Could Be Forgiven?

To qualify, the borrower must have an annual income of less than $125,000. Borrowers who meet this criteria can save up to $10,000 in student loans, as per Bold.org.



 

As per The Guardian, Republicans didn't let Biden Administration extend the pause any further, and the plan is now tied up in the US courts. As per studentaid.gov,  "Courts have issued orders blocking our student debt relief program, Congress recently passed a law preventing further extensions of the payment pause. Student loan interest will resume starting Sept. 1 and payments will be due starting in October."

How To Prepare For The Federal Loan Repayment?

Pexels | RDNE Stock project
Pexels | RDNE Stock project

Here are certain steps you can take

Connect With Your Servicer- As we know that some of the companies that used to give out loans will no longer be doing so. As a result, many of the borrowers will have to adjust to a new servicer. Head to studentaid.gov to know more...Make sure your services have your updated contact information so that you are intimated timely.

Look for the repayment option that suits you best- Income-driven repayment has become way more appealing after President Joe Biden signed the $1.9 trillion federal Coronavirus stimulus package. So you would want to check out the new schemes that may be better for your current circumstance.

If You Can't Afford The Payments- You can always put in requests for economic hardships or unemployment deferment. If you don't meet the criteria for the mentioned options, you can always look into forbearance to continue suspending your bills. 



 

As per CNBC Make It, college graduates tend to earn 80% more compared to those with just a high school diploma. This explains why everyone is trying to get a degree. College was always expensive but has become more important than it has ever been. 

David Deming, a professor of public policy at the Harvard Kennedy School and also the Harvard Graduate School of Education told CNBC that "when it comes to the student loan crisis" everyone shares a little bit of blame.

He also talks about how this is the first in the country's history that it has held $1.6 trillion dollars in student loans. 

"A generation ago, there was a system that helped you not take on the risk yourself to pay for college education, but society took on the risk for you by making tuition cheap and allowing you to benefit from that experience and then pay it back in the form of higher tax revenue. We’ve shifted the risk from society directly to the student."

"And that’s not a narrative that just has to do with bad actors and good actors. In many ways is a societal choice we’ve made. And in that sense, we all have to answer for it," he said.

MORE ON MARKET REALIST
The player, Ryan Halsey, took the game by storm in the initial rounds but was stumped in the finale.
1 hour ago
Sometimes the host of Family Feud just wants the chaos to end as it gets too much.
2 hours ago
The show took a hilarious turn when a contestant gave a bold answer that caught the host completely off guard.
4 hours ago
Despite talking through her guesses, Carrie Trujillo couldn't crack the puzzle and failed to win $40,000.
5 hours ago
Robert Herjavec and Lori Greiner rubbed it in O'Leary's face by celebrating their deal with Phoozy
1 day ago
Duc and Lisa Nguyen's stubbornness paid off, as the co-founders of Baubles + Soles got Daymond John as a partner.
1 day ago
The player got the host to be candid about his fears and his mother's opinion on him.
1 day ago
Justin Baer, founder of Collars & Co., was looking for mentorship from the Sharks in addition to a $300,000 investment.
1 day ago
She said that her husband may still have to buy a dog as America may hold him accountable.
2 days ago
When Harrison knew that the 18th-century map was the real deal, he made a genuine offer.
2 days ago
10 years after her sister’s win, Chelsea Hall hit the jackpot on ‘WoF’ with a brand new Mini Cooper and a cash prize.
2 days ago
The co-founders of BuggyBeds wowed the Sharks so much, they were "itching" to invest, and offered a $250k deal.
2 days ago
The guests were left stunned to find out just how much the repairs would cost.
3 days ago
Unfortunately for the seller, she allegedly got robbed of a significant amount of money.
3 days ago
Not only did the co-creators of FlingGolf get a $300,000 deal, they proved Mr Wonderful wrong.
3 days ago
The guest never imagined the old, autographed sneakers that his mom acquired could be worth so much.
4 days ago
The gameshow whiz did it again by bagging the top prize on yet another trivia test.
4 days ago
Riccardi took to Reddit to clear the air around his stunning loss which was facing scrutiny.
4 days ago
Fans gathered on the show's unofficial Reddit forum to discuss the 'dumb and useless' items.
5 days ago
The contestant, Matt Benton expressed he wanted to enjoy the moment before thinking of the future.
5 days ago