Biden's 12 month "on ramp" to student loan repayment explained

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The payment pause will expire this fall. That means interest will start accruing on your loans starting Sept. 1, and you'll need to begin making payments again in October, according to the Education Department. The exact due date of your first post-forbearance bill could vary.

Biden announced a 12-month "on-ramp" transition period" for borrowers unable to make monthly payments. The 12-month “on-ramp” to repayment, running from October 1, 2023, to September 30, 2024, so that financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies.

Borrowers are expected to make payments, monthly payments will still be due, and loans will still be accruing interest. In the event you cannot make the payment, the student loan servicers will not negatively report nonpayment, mispayments, or late payments to the credit bureaus for a 12-month period. It's basically a year-long grace period where borrowers who miss student loan payments won't be reported to any of the credit bureaus, and they won't go into default.

Need help with what options are best for you? Get in touch with us. To connect with a loan advisor and schedule a consultation, please click here. You may also use our read more information about the SAVE program and other available resources about student loans by visiting the help section of our website at https://resources.myloansense.com

We invite you to dig deeper into this topic to gain a better understanding of how it can benefit you. To help you on this journey towards financial empowerment, we encourage you to connect with our knowledgeable loan advisors. By scheduling a consultation, you'll unlock valuable insights that can help you make informed decisions about your student loans —Schedule Your Consultation today, and empower yourself with the knowledge needed to take control of your financial future! Your financial well-being starts with informed decisions.

Need help with what options are best for you? Get in touch with us.