July 3, 2021

When Do Student Loan Payments Resume?

Repayment

“When do student loan payments resume?” you may be nervously wondering. The end of the administrative forbearance for federal student loans in the U.S. is looming closer and closer; it is scheduled to end on September 30, 2021. In short, student loan payments are set to start on February 1, 2022

Why will student loan payments resume soon? What can you do to prepare for the student loan payment restart?

Why Will Student Loan Payments Resume?

The pandemic has been challenging in financial terms for you and for a large portion of the U.S. population.

Nevertheless, one crucial advantage that the pandemic has caused you and 35 million other borrowers is the administrative forbearance period from the U.S. government for federal student loans and privately held FFEL loans in default.

Beginning from last March 2020 up to now, the payments for these loans have been temporarily suspended. As a result, borrowers like you did not need to make payments for the meantime. Interest charges and various collection activities were paused as well during that period.

The administrative forbearance, which was launched by the CARES Act, was a major relief to borrowers. However, all good things come to an end, and administrative forbearance is one of them.

The approaching conclusion of the administrative forbearance is mainly caused by the improvement in the U.S. economy due to the growth of the employment rate and the rise of vaccination rates.

How Can You Prepare for Student Loan Payments Restarting in October?

Here are some ways you can get ready for student loan payments restarting in February of the new year.

Be Informed

First, you should keep your contact details updated with the Federal Student Aid. This way, the Federal Student Aid will be able to successfully send you your billing statement 21 days before the due date of your next payment. By receiving timely information, you will not be too surprised about the details of your payment responsibilities.

Next, you must keep abreast of the latest news regarding the restarting of student loan payments. Check out the Federal Student Aid website and your loan provider’s website on a regular basis for current updates.

Explore Your Options

If you are not sure if you are financially capable of restarting student loan payments in October, there are available options that can help alleviate your situation. You can apply to one or more of these programs which you are qualified for.

Loan Forgiveness

Loan forgiveness means that you are no longer required to make payments on your student loan because of the nature of your job.

  • Public Service Loan Forgiveness (PSLF): You may potentially be eligible for Public Service Loan Forgiveness (PSLF) in case you are an employee of the government or a nonprofit organization. PSLF is applicable to direct loans.
  • Teacher Loan Forgiveness: You may possibly qualify for Teacher Loan Forgiveness if you have been a teacher for five years in an educational service agency or a low-income elementary or secondary school. This type of forgiveness is relevant to Direct Loans and FFEL Program loans.

General Forbearance

Aside from the administrative forbearance period as emergency relief, the federal government also provides the option for general forbearance if you cannot afford to make payments on your loans because of financial challenges, medical expenses, etc.

Nursing Education Loan Repayment Program

You may potentially qualify for the Nursing Education Loan Repayment Program if you are a licensed registered nurse or nurse faculty with complete training. This is a special program that assists registered nurses in the repayment of student loans in exchange for nursing services in certain facilities where there is currently a lack of nurses.

Keep Discovering New Options

Aside from the programs mentioned above, there are also other strategies that can help you reduce or eliminate your loan payments. These include applying income-driven repayment plans, refinancing programs, etc.

As February 1, 2022 approaches and restarting student loan payments is close to becoming a reality, make sure to keep reading student loan articles like this to explore all your student loan payment options.

Use Chipper for Lower Payments

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Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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