First, make sure that you’re prepared to start making payments, up-to-date on correspondence, etc. If you’re afraid you can’t afford your payment, consider recertifying your income if it’s gone down over the last three-plus years. You can also enroll in the new SAVE plan.
If you have questions about whether your loans qualify for forgiveness under the IDR Account Adjustment, are wondering about consolidation, or how you could be impacted by federal loan forgiveness—such as whether that forgiveness may be taxed(!)—contact your student loan professional.
Like any uncertain investment, patience is key to reaping the rewards of an education. The fruits of your labor may not be what you set out to find, nor what you thought you needed, but, whatever you reap, you’ll need patience while it grows.
Borrowers first got this news back in January when the Department of Education announced that it would be revising the REPAYE plan, but Ed. has decided—instead of revising it—to replace it altogether. The new plan, SAVE (Saving on a Valuable Education), will be phased in over the next year and promises to be the most affordable plan yet.
Last fall, the Department of Education announced new regulations surrounding student loan repayment for those pursuing Public Service Loan Forgiveness (PSLF). This comes after it completed a negotiated rulemaking process that included input from industry professionals like Navigate and our partners in the PSLF Coalition.
If you haven’t touched your student loans since March, 2020, don’t worry: you’re in the same boat as—quite literally—millions of other borrowers. To get yourself ready for repayment, here are some ways you can get ahead of the curve.
As part of the recent bipartisan agreement to raise the debt ceiling, the current student loan payment pause will expire at the end of September. After more than three years of forbearance, borrowers will resume making their monthly federal loan payments, albeit in a very different economic climate than before.
As part of the recent bipartisan agreement to raise the debt ceiling, the current student loan payment pause will expire at the end of September. After more than three years of forbearance, borrowers will resume making their monthly federal loan payments, albeit in a very different economic climate than before.
Other than cementing the end of the payment freeze, the debt ceiling bill has little effect on ongoing student loan reform undertaken by the Biden Administration. Programs like the revised Income Driven Repayment (IDR) plans, Limited Waiver Opportunity for PSLF, and IDR Account Adjustment proceed as planned.
The Biden Administration announced the IDR Account Adjustment in 2022, which was a new Department of Education initiative to perform a one-time reevaluation of all borrower payments made under income-driven repayment plans.