Demonstrators in favor of student loan debt forgiveness outside the US Supreme Court in Washington, DC, June 30, 2023.It's a moment those with student loans have been dreading -- payments are one step closer to resuming.
The two-step approach to restarting the student loan system is meant to give borrowers -- and servicers -- a slower on-ramp to dust off the cobwebs on a process that's long been stalled because of the pandemic.
, an organization that gathers educational data and statistics. Interest rates often have a big impact on how much a borrower ultimately pays back. Borrowers should get a bill with a payment amount and due date at least 21 days before their due date, according to FSA. If they haven't, the office recommends updating the contact information they have filed with both their servicer and FSA.
"We will not report you as delinquent during the on-ramp, but we do not control how credit scoring companies factor in missed or delayed payments," FSA says.The administration is still fighting for debt cancellation on a broad scale, attempting a different path through the Higher Education Act of 1965 -- which provides government-backed student loans and grants the U.S.
And as is the case with other income-driven plans, once a borrower makes good on those payments for a set amount of time, usually between 20 and 25 years, the remaining loan is forgiven.