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Important Student Loan Information

Federal Student Loan Payments Restart Oct. 1

If you, your colleagues, friends or family members have federal student loans, we’re asking that you keep reading and share this important information with others. The Covid-era federal student loan payment pause is ending. Federal student loan interest resumed earlier this month and federal student loan payments restart October 1.

For those who graduated college between 2020 and today, there has been no requirement to make payments on federal student loans. For others, this may be the first time in at least three years where they have needed to add student loan payments back into their monthly budgets.

Here is what people need to know and do:

  • Ensure that the student loans do not go into default. The first step is to log in to studentaid.gov to recertify income and enroll in a repayment plan. This needs to be completed before October 1, 2023.
  • If borrowers work for a 501(c)(3) nonprofit organization, they may be eligible to enroll in the Public Service Loan Forgiveness (PSLF). Go here to begin the application.
  • Look into a new income-driven repayment (IDR) plan called the SAVE (Save on a Valuable Education) plan. This is the most affordable repayment plan ever created — it drastically reduces monthly payments, and after a set number of years, the remaining balance will be forgiven. The plan also eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made.
  • If borrowers were on the REPAYE plan, they will automatically receive the benefits of the SAVE plan without needing to take any action. If they weren’t on the REPAYE plan, they will need to apply for the SAVE plan. Apply for the SAVE plan here.
  • Schedule a meeting with College Now’s Adult Programs and Services team. College Now is fortunate to have federal student loan experts! They can also help borrowers enroll in the PSLF program and will help them select the best repayment plan for their individual situation. This service is free of charge.

Thank you for sharing this information with your networks. The College Now team looks forward to helping borrowers with the confusing student loan repayment process.

For more tips, play and share the videos featuring College Now’s federal student loan experts Bailey Capelle and David Burke who lead our Adult Programs team.