{"id":2058396,"date":"2023-10-06T18:13:01","date_gmt":"2023-10-06T22:13:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-to-know-as-student-loan-payments-resume\/"},"modified":"2023-10-06T18:17:20","modified_gmt":"2023-10-06T22:17:20","slug":"what-to-know-as-student-loan-payments-resume","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-to-know-as-student-loan-payments-resume\/","title":{"rendered":"Key Points for Student Loan Payment Resumption"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwhat-to-know-as-student-loan-payments-resume%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2058396&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content !text-lg\" id=\"post_content\">\n<p>Tens\u2062 of millions of \u2063Americans are \u200dabout to face a reality check as their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-to-know-as-student-loan-payments-resume\/\" title=\"Key Points for Student Loan Payment Resumption\">federal student loan bills\u200c start rolling<\/a> \u2064in\u200d again. After a \u200cthree-year pause, the temporary relief on loan payments and collections has expired, leaving borrowers to resume their monthly payments.<\/p>\n<p>This pause was initially implemented in March \u200b2020 as part\u200c of\u200c the Trump administration&#8217;s efforts to alleviate the financial strain caused by the COVID-19\u200d pandemic. It was extended multiple times under both the Trump and Biden administrations but finally came to an end on October 1 due to a debt-ceiling deal.<\/p>\n<p>While most borrowers \u200bwill have their first payment due in October, it&#8217;s important to note that not everyone will have the same due date. The Department of \u200cEducation (DOE), which oversees a federal student loan portfolio totaling\u200c over $1.6 trillion, will send borrowers a bill at least 21 days before their\u200c payment is\u2062 due, providing them with the payment amount \u2064and due date.<\/p>\n<p>For recent graduates, there is\u200b a grace period of six to nine months after leaving school before \u200bthey have to start making payments. \u2064However, \u2063for\u200d the majority of borrowers, their monthly\u2064 repayment\u2063 amount will remain the same as before the pause, unless they\u2062 made optional repayments or changes to \u200dtheir account.<\/p>\n<blockquote>\n<div class=\"mb-4 flex flex-col gap-4\">\n<div class=\"flex gap-3\">\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:66.67%\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">Graduating students attend their graduation commencement at\u2064 City College in \u2062New\u2063 York on June \u20643, 2016. (Spencer Platt\/Getty Images)<\/div>\n<div class=\"bg-comp-divider h-px\"><\/div>\n<\/p><\/div>\n<\/blockquote>\n<p>Interest on federal student loans resumed in September\u2064 after being effectively set to zero in March 2020. Borrowers can expect to pay \u200bthe same\u200c interest rates as before the freeze.<\/p>\n<h2>Repayment Plans<\/h2>\n<p>Typically, borrowers will repay their loans\u200b through income-driven repayment \u2062(IDR) plans, where the monthly \u200dpayment amount is based on their income. Any\u2064 remaining\u2063 balance will be discharged \u2062at the end of the 20-\u200b or 25-year repayment term.<\/p>\n<p>The \u2062DOE currently offers\u200c four different IDR \u200dplans. The \u2063newest plan, called Saving on A Valuable Education (SAVE), is replacing the\u2064 widely used\u2064 Revised Pay As You Earn plan. The department is \u200balso limiting \u200cenrollments in older repayment plans.<\/p>\n<div class=\"shortcode mx-auto max-w-[1100px]\">\n<div class=\"mb-6 flex flex-col gap-4 float-none mx-auto w-[200px] md:float-right md:ml-6\">\n<div class=\"flex gap-3 flex-col sm:block\">\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:133%\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The\u200d SAVE plan offers generous\u2063 repayment options for undergraduate \u200dstudent loans. However, some\u2064 critics have expressed concerns that it may turn the loan program into a \u2064quasi-grant program.<\/p>\n<p>Under the SAVE plan, borrowers with a discretionary income threshold of 225 percent\u200b of the federal\u2064 poverty \u2063guideline will \u200dhave a monthly payment of\u2063 $0. Those earning \u2064less than $67,500 for a\u200d family of four will\u2064 also have $0\u2063 monthly bills.<\/p>\n<p>Starting next summer, most other borrowers \u2062on the\u2063 SAVE plan will see their repayments on undergraduate loans \u2062reduced by at least half. Borrowers with both undergraduate and graduate loans will pay a weighted average \u200cof\u200b 5 to 10 percent \u200bof their income\u2064 based on the\u200c original principal balance.<\/p>\n<div class=\"shortcode\">\n<div id=\"in_article_related_stories\" class=\"mx-auto mb-4 w-full max-w-[500px] px-4 text-[16px] leading-[20px] text-[#262626] md:float-right\">\n<div class=\"mb-4 border-b border-black pb-1\">\n<h2 class=\"font-sans text-[16px] font-semibold leading-5 text-black\">More\u200b Articles<\/h2>\n<\/p><\/div>\n<div class=\"mb-6 flex gap-4\">\n<div class=\"shrink-0 basis-[120px] sm:basis-[268px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-announces-9-billion-more-in-student-debt-cancellation-5503723?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<div class=\"relative\" style=\"padding-bottom:60%\"><\/div>\n<p>          <\/a>\n        <\/div>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-3 sm:line-clamp-6\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-announces-9-billion-more-in-student-debt-cancellation-5503723?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-[18px] leading-[22px]\">Biden \u2063Announces Additional $9 Billion in Student Debt Discharged<\/h3>\n<p>            <\/a>\n          <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"mb-6 flex gap-4\">\n<div class=\"shrink-0 basis-[120px] sm:basis-[268px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-administration-cancels-37-million-in-student-debt-5495557?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<div class=\"relative\" style=\"padding-bottom:60%\"><\/div>\n<p>          <\/a>\n        <\/div>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-3 sm:line-clamp-6\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-administration-cancels-37-million-in-student-debt-5495557?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-[18px] leading-[22px]\">Biden Administration Cancels $37 Million in Student\u2064 Debt<\/h3>\n<p>            <\/a>\n          <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Students who borrowed less than $12,000\u2062 will have their remaining balances wiped out\u200d after making 10 years of repayments instead of the usual 20 to 25 years.<\/p>\n<p>During the repayment pause, \u2063borrowers&#8217; loan balances did\u200b not accumulate unpaid\u2063 interest. For example, if\u200b $50 in interest accrued each month and\u200c the borrower made a $30 repayment, the remaining $20\u200d would not\u200c be charged.<\/p>\n<div class=\"my-5\">\n<h2>Delaying Payments for a Year<\/h2>\n<p>The resumption of repayments will have a significant impact on younger borrowers who exhausted their six-month grace \u200dperiod during the three-year freeze. Many of them may\u2064 have made financial commitments, such\u2063 as renting a more expensive \u2064apartment \u200cor taking on additional debt, assuming they wouldn&#8217;t have\u2063 to worry about student loans \u200dfor a while.<\/p>\n<\/p><\/div>\n<div class=\"shortcode mx-auto max-w-[1100px]\">\n<div class=\"mb-6 flex flex-col gap-4 float-none mx-auto w-[200px] md:float-right md:ml-6\">\n<div class=\"flex gap-3 flex-col sm:block\">\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:147%\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>An analysis by the Consumer Financial Protection Bureau revealed that the median monthly debt obligations for younger student loan\u200c borrowers aged 18 to \u200c29 \u200dincreased by 252 percent, reaching $229 in\u200d March 2023.<\/p>\n<p>To \u200daddress\u2062 the concerns of borrowers who may struggle to resume repayments, the Biden administration is \u2064offering a year-long &#8220;on-ramp&#8221; repayment period. Borrowers don&#8217;t need to enroll or sign up for this \u200bprogram; they will automatically be eligible if they \u200dchoose not to make \u2064payments.<\/p>\n<p>During the on-ramp period, which spans from October \u200c1,\u200b 2023, to September 30, 2024, the DOE will \u200bnot report late or missed payments to debt collection agencies or credit bureaus. Loans \u200cwill not be placed in default or delinquency.<\/p>\n<blockquote>\n<div class=\"mb-4 flex flex-col gap-4\">\n<div class=\"flex gap-3 flex-col sm:flex-row\">\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:54.82%\"><\/div>\n<\/p><\/div>\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:54.82%\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">(Left) Students participate in a demonstration where they pull a mock \u201cball and \u2062chain,\u201d which\u200b represents the then-$1.4 trillion student debt, at Washington University in St. \u200cLouis on Oct. 9, 2016. (Right) Students walk past a graduation cap and\u200b stole at George Washington University in Washington on \u2063May 2, 2022. (Paul J. Richards\/AFP via\u2063 Getty Images, Stefani Reynolds\/AFP \u200bvia Getty Images)<\/div>\n<div class=\"bg-comp-divider h-px\"><\/div>\n<\/p><\/div>\n<\/blockquote>\n<p>However, interest\u200b will continue \u2062to accrue\u2064 during this \u200cperiod, so borrowers who don&#8217;t\u200b make monthly payments to cover the interest will see their overall balance increase.<\/p>\n<p>It&#8217;s important to note that\u2062 missed payments during the on-ramp period will still be due after it expires and will not count toward loan forgiveness\u200d under\u2063 IDR plans or Public Service Loan Forgiveness.<\/p>\n<p>The DOE advises\u2064 borrowers to \u2062continue making payments while waiting for a potential new debt relief program. They \u200demphasize that not making payments can \u200cresult in increased\u200d loan amounts and potential credit score impact.<\/p>\n<div class=\"my-5\">\n<h2>A New &#8216;Forgiveness&#8217; Program?<\/h2>\n<p>The Biden \u2062administration has already discharged $127 billion of \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/whoopi-declares-2024-gop-hopeful-wannabe-dictator-this-time-its-not-trump-2\/\" title=\"Whoopi labels 2024 GOP aspirant 'dictator' - Not Trump again.\">student loan \u2063debt<\/a> for nearly 3.6 million Americans. On\u2062 October 4, the DOE announced \u2062an\u200c additional \u200b$9 billion in student debt \u200bdischarge, despite strong opposition from Republicans.<\/p>\n<\/p><\/div>\n<div class=\"my-5\">\n<p>The administration\u2064 is also exploring the possibility of\u2064 &#8220;forgiving&#8221; hundreds \u200cof billions of dollars of federal student loan \u200cdebt using the Higher Education Act (HEA). This approach would involve a lengthy process called &#8220;negotiated rule-making,&#8221; which requires \u200bpublic input\u2064 and extensive discussions before any changes can \u200dbe implemented.<\/p>\n<p>The \u2062DOE\u2064 has received\u2064 over 26,000 \u2063public comments \u200bon tailoring this relief \u200dand will be discussing the \u2064initial policies with the newly established Student\u200d Loan Relief Committee.<\/p>\n<\/p><\/div>\n<div class=\"shortcode\">\n<div class=\"mb-4 flex flex-col gap-4\">\n<div class=\"flex gap-3\">\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:66.67%\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">People walk on the campus of the University of North Carolina \u2063Chapel Hill in Chapel Hill,\u200c N.C., on June 29, 2023. (Eros Hoagland\/Getty \u2064Images)<\/div>\n<div class=\"bg-comp-divider h-px\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The \u2063Student Loan Relief Committee will be discussing the debt\u200d relief issue \u2062paper during their first meeting on\u200b October 10 and \u200d11. The committee\u2063 consists of\u200d non-federal negotiators \u2063from various groups, and the public will have an opportunity to provide comments.<\/p>\n<p>The committee will continue to meet in the coming months, \u200band the public will have a chance to submit \u2063written comments \u2064on the draft rules next year. Final rules on student loan forgiveness are \u200dexpected to be announced before November 1, 2024.<\/p>\n<p>It&#8217;s worth noting that a change in presidency could\u200b impact the implementation of \u2064these rules, as seen in the past with the reversal of certain regulations. In\u200c the meantime, \u200dthe DOE advises borrowers \u2064to continue making payments \u2064while \u200cthey await potential changes to\u200d the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-asks-education-secy-if-he-can-legally-cancel-student-debt\/\" title=\"Biden asks education secy. if he can legally cancel student debt\">student loan system<\/a>.<\/p>\n<div class=\"shortcode\">\n<div class=\"mb-4 flex flex-col gap-4\">\n<div class=\"flex gap-3 flex-col sm:flex-row\">\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:66.66%\"><\/div>\n<\/p><\/div>\n<div class=\"flex-1\">\n<div class=\"relative\" style=\"padding-bottom:66.66%\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">A change in \u200cpresidency would likely undo a new debt relief program&#8217;s implementation. In 2019, then-Education Secretary Betsy DeVos (R) tossed a rule regulating\u2064 the federal funding \u200dfor career programs that\u200c had been passed under the Obama administration.\u2064 (Madalina Vasiliu\/The Epoch Times, Chip Somodevilla\/Getty Images)<\/div>\n<div class=\"bg-comp-divider h-px\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Republicans have\u2063 also proposed alternative plans to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-bill-seeks-to-penalize-colleges-while-providing-relief-to-student-loan-borrowers\/\" title=\"Bipartisan bill seeks to penalize colleges, while providing relief to student loan borrowers\">address student loan debt<\/a>. The Federal Assistance to\u2064 Initiate \u2062Repayment \u2062(FAIR) \u200bAct aims\u200d to provide relief to\u2064 those\u2064 most in need while ensuring a smooth transition back into repayment. It condenses existing IDR plans into one predictable and \u2063affordable plan and offers repayment assistance that phases out as borrowers&#8217; incomes increase.<\/p>\n<p>Additionally, Senate Republicans have introduced \u2064the Lowering Education Costs and Debt Act, a package of \u2062bills aimed at providing better information to students and families\u2064 before taking out loans and improving transparency\u2064 about college programs.<\/p>\n<p>As the country&#8217;s largest consumer lender, the DOE plays a crucial role in the student loan landscape, surpassing major financial institutions.<\/p>\n<\/div>\n<p> <\/p>\n<h2>\n<\/h2>\n<p><span>  Title: Federal Student Loan Payments Resume: What \u200cBorrowers \u200dNeed to Know<\/p>\n<p>Introduction<\/p>\n<p>Tens of\u2062 millions \u2062of\u2062 Americans will soon face the\u2063 end of a temporary relief \u2063on\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/heres-what-each-of-bidens-42-executive-orders-will-actually-do\/\" title=\"Here\u2019s What Each Of Biden\u2019s 42 Executive Orders Will Actually Do\">federal student loan payments<\/a> and collections. After \u2064a three-year\u200d pause, borrowers \u200bare \u200bnow required\u200b to resume their\u2062 monthly payments.\u2064 This article provides an \u200coverview of the background, repayment\u200d plans, and concerns surrounding\u2064 the resumption of federal\u200d student loan payments.<\/p>\n<p>Background<\/p>\n<p>The temporary pause\u2062 on federal \u200bstudent loan payments was\u200d initially \u200bimplemented in March 2020 as\u2064 part of \u2063the Trump \u200dadministration&#8217;s efforts to\u200c alleviate the financial strain caused by the COVID-19 pandemic. It was later extended multiple times under\u200c both the Trump<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After a three-year hiatus, tens of millions of Americans will resume receiving their monthly federal student loan bills. The pause on loan payments and collections, initiated in March 2020 to alleviate financial strain, expired on Oct. 1, marking the end of the Trump administration&#8217;s relief measures.<\/p>\n","protected":false},"author":392,"featured_media":2058397,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2058396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2058396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/392"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2058396"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2058396\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2058397"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2058396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2058396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2058396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}