CHICOPEE, Mass. (WWLP) – For over three years now, student loan borrowers did not have to worry about their monthly payments, but that pandemic-era policy is set to end in just a few weeks.
Federal student loans will start accruing interest again on September 1st and payments will be due starting in October.
More than 40 million Americans will have to start making student loan payments again. Many student loan borrowers will soon make their first payment in a long time, or maybe even for the first time ever.
Loan servicers should send borrowers a notice of payment at least 21 days before their payment is due. These bills come amid soaring inflation and talks of economic recession.
So how should student borrowers prepare? If you want to start planning for repayment now, locate your student loan servicers and contact them right away.
Student borrowers should update their contact information if it’s changed within the last few years, and ask how much they might owe when payments resume, how much their monthly bills could be, and what payment plans are available to them.
Normally, borrowers who don’t pay can face delinquency and eventually default, but President Biden rolled out a 12-month on-ramp transition period that will help ensure borrowers can successfully return to repayment without falling into delinquency or default.