Student Loan Payments , Are About to Resume .
CNN reports that federal student loan borrowers will
be required to make monthly payments for the first
time in over three years beginning in October.
Payments were put on hold in March of 2020 to provide relief to almost 44 million people amid the pandemic. .
This fall, the pause is set to expire
after a number of extensions by both
the Trump and Biden administrations.
CNN reports that interest will start to accrue
again on September 1, returning to the same
rate as before the pandemic freeze.
Betsy Mayotte, president of The Institute of
Student Loan Advisors, notes that borrowers should recertify their income if they have experienced
a decrease in pay or increase in family size. .
CNN reports that millions of
borrowers will now have a different
loan servicer than they did in 2020.
Borrowers can find out who is
servicing their loads by logging on
to the Federal Student Aid website. .
Automatic payments that were set up prior
to the pandemic pause will probably need to be
set up again by visiting loan servicer websites. .
CNN reports that borrowers can apply for several different
kinds of income-driven plans that have the potential
to lower the size of payments due every month.
The Biden administration continues
to search for alternative ways to
provide debt relief for student borrowers.