Student Loan Repayment Returns

The U.S. Department of Education has announced that student loan repayment will resume in October 2023. Borrowers will be notified by their loan servicers before loan repayment restarts. We encourage you to review the information and FAQs available at www.studentaid.gov. Below are a few of the most commonly asked questions from student loan borrowers.

What if I can't make payments right away when payments resume in October?

Borrowers who want to reduce their monthly payments should be sure to use StudentAid.gov to explore repayment plan options-including income-driven repayment plans, which could significantly reduce monthly payments for qualifying borrowers. The U.S. Department of Education has finalized the most affordable repayment plan in history. It's called the Saving on a Valuable Education (SAVE) plan. Borrowers signed up for the current Revised Pay as You Earn (REPAYE) plan will be automatically enrolled in SAVE.

For borrowers who still cannot make their payments, the U.S. Department of Education is creating a temporary "on-ramp" period over the next year that will help borrowers avoid the harshest consequences of missed, partial, or late payments. During that time, missed, partial, or late payments will not lead to negative credit reporting, default, or loans being sent to collection agencies. Borrowers who can make payments should do so, as payments will be due and interest will accrue during this on-ramp period. Additionally, missed payments will not count toward loan forgiveness under any of the income-driven repayment plans or Public Service Loan Forgiveness.

How should I prepare for student loan payments to restart?
  • Make sure you know which loan servicer is yours.
  • Update your contact information in your profile on your loan servicer's website and in your StudentAid.gov account.
  • Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size. This summer, we will begin implementing the SAVE plan, which is our most affordable repayment plan ever. More information about SAVE can be found below. Borrowers signed up for the current REPAYE plan will be automatically enrolled in SAVE.
  • Review your auto-debit enrollment or sign up for the first time to automatically deduct your monthly payment from your bank account. To do so, log in to your loan servicer's website or contact your loan servicer directly. If you were enrolled in auto-debit before the payment pause and you would like to resume when payments resume, you need to confirm your auto-pay enrollment with your student loan servicer if you haven't already done so.
When will my payment be due?

Your first payment will be due in October 2023. You'll get your bill in September or October - at least 21 days before your payment due date - with your payment amount and due date.

What's my monthly payment amount going to be?

Your bill arriving in September or October will contain your payment amount.

You'll be able to visit your account on your servicer's website to see your payment amount once your disclosure or bill has been sent. Make sure you know which loan servicer is yours.

You can also get an estimate of your payment amount and compare repayment plans by using Loan Simulator.

What happens if I'm new to repaying my loans/haven't made a payment before?

Your first payment will be due in October 2023, unless you left school recently (within the last 6 months) and will still be in your automatic grace period at that time.

Your monthly payment amount will depend on what repayment plan you choose. If you don't choose a plan, you'll be put on the Standard Plan that divides your total loan amount into monthly payments over 10 years (this plan is not based on your income). Compare repayment plans using Loan Simulator and consider applying for an income-driven repayment (IDR) plan. In the coming months, we will implement the SAVE plan - most affordable repayment plan ever created. Learn more about SAVE. Borrowers signed up for the current REPAYE plan will be automatically enrolled in the SAVE plan.

You'll get your first bill at least 21 days before your payment due date.

What if I have loans in default?

Most borrowers in default can use the Fresh Start initiative to easily get their loans back in good standing. Don't wait! It's free and takes 10 minutes or less to sign up and enroll in an affordable repayment plan with payments as low as $0 a month.

I've heard that the Department of Education is rolling out a more affordable repayment plan. What is it and how do I sign up?

This summer, the U.S. Department of Education will implement parts of the SAVE plan - the most affordable repayment plan ever. Borrowers who enroll in the REPAYE plan will be automatically enrolled in the SAVE plan when it becomes available. For more information on the SAVE plan, visit StudentAid.gov/save.

Check out these Information Guides**:

**Guides courtesy of the National Association of Student Financial Aid Administrators (NASFAA) May 2023.