Student Loan Repayments Resume In October: Here’s What We Know

Student loan repayments will resume in October, and there are some things borrowers should know.

Interest will start accruing again beginning on September 1.

After the Supreme Court struck down his student loan forgiveness plan, President Joe Biden introduced an “on-ramp” program. The “on-ramp” program lasts for one year, and borrowers won’t be penalized for a missed, partial or late payment.

What if you skip payments?

Although your missed payments will be waived until September 30,2024, interest will accumulate during the “on-ramp” program.

According to CBS NEWS,Persis Yu, the Deputy Executive Director at The Advocacy Group Student Borrower Protection Center noted, “It’s critically necessary that we have some kind of, like, reprieve for borrowers because the reality is that most Americans’ budgets don’t have the flexibility to suddenly be making what is often hundreds of dollars of monthly payments right now.”

The SAVE Plan is also a payment option available for families based on size and income.