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.
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.
Remember, if you’re one of the millions of Americans waiting on PSLF, you’re not alone! And if you need a helping or comforting hand, we’re just a phone call away from answering your questions, guiding you through conversations with MOHELA, or just helping you keep calm while you get your PSLF on.
Early next year, borrowers on IDR plans will have their payments recounted under a federal account adjustment. Those with FFEL loans will see all previous payments counted towards IDR Forgiveness, or Public Service Loan Forgiveness, if they consolidate their loans into a Direct Loan by the end of 2023.
One thing that sets Navigate apart from other student loan advisors is that we’re right there with you while you’re sitting on hold. We’ll join you on a call with your servicer and guide you through the good, bad, and ugly (i.e. the hold music).
If you are among those with variable-rate student loans, don’t despair: your rate may be going up right now, but it’s not permanent. Since rates are tied to the market, once the economy levels out again, your rate will almost surely go back down if you can hold on until then.