Student borrowers experienced a three-year hiatus on repayment.
The official return of payments on federal student loans began October 1, after borrowers had experienced three years without payment requirements or the accrual of interest, initially put in place due to the coronavirus pandemic.
A loan repayment “on-ramp” still remains as borrowers can miss monthly payments for the coming year with few consequences, including no reports by the Department of Education to credit agencies. However, interest will continue to accrue on the loans.
Late last week, the Department of Education, released an issue paper in anticipation of the payment resumption, proposing “policy considerations to create a path to debt relief for student loan borrowers in need.“
A September 2023 report on student loan debt statistics showed that Americans owe $1.77 trillion in student loan debt.
As the Lord Leads, Pray with Us…
- For Education Secretary Miguel Cardona as he seeks avenues to extend debt relief to student borrowers.
- For COO Richard Cordray as he oversees the Office of Federal Student Aid.
- For student borrowers as they adjust to again making payments of federal loans.
Sources: Axios, Lending Tree, The Hill
