When Will Student Loan Payments Resume?

Many students are wondering when their student loan payments will resume.
The Department of Education has released guidance on this topic.

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Introduction

If you have federal student loans, you may be wondering when your student loan payments will resume. The good news is that there is no set date for when payments must resume. However, there are a few things to keep in mind that will help you make the best decision for your unique situation.

Keep in mind that federal student loans have a grace period of six months after you graduate, leave school, or drop below half-time enrollment. This means that you are not required to make any student loan payments during this time. However, if you choose to make payments during this grace period, you may be eligible for interest-based repayment plans and may be able to pay off your loans more quickly.

In addition, there are several deferment and forbearance options available if you are struggling to make your student loan payments. If you qualify for deferment or forbearance, your student loan payments can be postponed or reduced temporarily. This can give you some much-needed breathing room if you are facing financial difficulties.

If you are not sure when your student loan payments will resume, the best thing to do is contact your loan servicer and ask. They will be able to provide you with information about your specific situation and help you decide when the best time to begin making payments would be.

What to Do If You Can’t Afford Your Student Loan Payment

If you’re struggling to make your student loan payment, don’t wait until you’re in default to take action. You have options that can help you stay on track.

First, contact your loan servicer. They may be able to offer you a different repayment plan that better fits your budget. If you’re experiencing a financial hardship, they may also be able to temporarily postpone your payments or reduce your interest rate.

You should also consider consolidating your loans. This can help you lower your monthly payment by extending the term of your loan. Keep in mind that this will result in paying more in interest over time.

If you’re still having trouble making ends meet, there are programs that can help. The income-driven repayment plans offered by the Department of Education are based on your income and family size. You can choose from four different plans, and each has its own eligibility requirements.

The most important thing is to take action before you fall behind on your payments. By doing so, you can avoid default and keep your student loan debt manageable.

Forbearance and Deferment

Forbearance and deferment are both ways to temporarily stop making federal student loan payments. With forbearance, you might be able to reduce or suspend your payments for up to 12 months. You’ll still accrue interest on your loans during forbearance, though. In some cases, you might be able to pay the interest that accrues during forbearance so it doesn’t get added to your principal balance.

With deferment, you can temporarily postpone repayment on certain types of federal student loans—such as Direct Subsidized Loans and Subsidized Federal Stafford Loans—for up to three years. Interest won’t accrue on Direct Subsidized Loans or Subsidized Federal Stafford Loans during deferment (meaning you won’t have to pay this interest). For all other types of federal student loans, including Direct Unsubsidized Loans and all PLUS Loans, interest will continue to accrue during deferment. You’ll be responsible for paying this interest even though your loan payments are postponed.

Loan Consolidation

Loan consolidation is when you combine multiple student loans into a single loan with a single monthly payment. Loan consolidation can be a great way to simplify your student loan payments, especially if you have multiple loans with different interest rates. If you consolidate your loans, your new interest rate will be the weighted average of the interest rates on your existing loans.

Refinancing Your Student Loans

If you have federal student loans, you may be able to lower your monthly payments by refinancing through a private lender. You’ll need to have good credit and a steady income to qualify, but if you do, you could end up with a much lower interest rate and monthly payment.

Conclusion

If you’re like most college graduates, you’re probably wondering when your first student loan payment is due. The answer depends on the type of loan you have and the repayment plan you choose.

Federal Stafford Loans and Federal Perkins Loans: If you have a Stafford Loan or a Perkins Loan, your first payment will be due six months after you graduate, leave school, or drop below half-time enrollment.

Federal Direct Loans: If you have a Direct Loan, your first payment will be due nine months after you graduate, leave school, or drop below half-time enrollment.

If you choose the Standard Repayment Plan for your Direct Loan, your payments will be fixed and evenly divided throughout the life of your loan. For example, if your loan has an 80-month repayment period (or 10 years), for each month of that period, one-eighth of the total amount of your loan will be due. The Standard Repayment Plan provides for the lowest total interest paid over the life of a Direct Loan because it requires higher monthly payments than other plans but ensures that the unpaid portion of principal and any accumulated interest is paid off within ten years. Your monthly payments are fixed and will never change under this plan; however, if at any time during repayment cannot afford these payments contact your loan servicer to discuss alternative repayment plans that may help make things more manageable until circumstances improve including an Income Based Repayment Plan or an Income Contingent Repayment Plan.

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