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watch nowThe one-year grace period for student loan borrowers who miss a payment expired this week. The goal of the 12-month "on ramp" to repayment was to give borrowers some breathing room as they worked student loan payments back into their budgets. Some borrowers haven't made payments in yearsCongress initially passed legislation to allow federal student loan borrowers to pause their loan payments in March 2020 as part of the Covid economic response. It's now been roughly a year since student loan payments resumed. TransUnion data shows that just over half of student loan borrowers made payments over the past several months.
Persons: servicers, haven't, they've, Billy Hensley, Intuit Credit Karma, Karma, Brandon Bell, Ted Jenkin, Jenkin, Sallie Mae's, delinquencies, Liz Pagel, hasn't, Pagel, Andrew Housser, Housser Organizations: National Endowment, Financial Education, CNBC, Financial Wellness, Board, Intuit Credit, Rice University Library, Getty, CNBC's, College, Finance Locations: HOUSTON , TEXAS, Houston , Texas, Atlanta
Defer payments (once they resume)The pandemic-era policy suspending federal student loan payments and the accrual of interest is still active. Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. Use the Public Service Loan Forgiveness programThe Biden administration has recently made a number of improvements to the Public Service Loan Forgiveness program, which allows those who work for the government and certain nonprofits to get their debt cleared after a decade of payments. To reach forgiveness, you need to have made 120 qualifying, on-time payments in an income-driven repayment plan or the standard repayment plan. Lenders will likely be overwhelmed when they have to begin collecting loan payments from tens of millions of people again.
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