April 13, 2021

When Does Student Loan Repayment Start?

Chipper Help

Recent student loan debt statistics show that over 45 million borrowers owe a record $1.7 trillion. However, the COVID-19 pandemic prompted the government to pause student loan repayment to alleviate financial burdens. This means millions of borrowers were granted the right to stop payments without incurring added interest or penalties.

President Joe Biden has extended former President Donald Trump’s loan forbearance initiatives until February 1, 2022. This article will discuss how such programs will impact student loan repayment.

Student Loan Forbearance Regulations

The Coronavirus Aid, Relief, and Economic Security (CARES) Act has automatically put federal student loans into administrative forbearance. This program allows you to stop making payments during the forbearance period without taking any action toward receiving its benefits. Student loans that fall under the CARES Act will incur zero percent interest until February of 2022. These conditions also apply to qualified defaulted loans. However, you have the option to repay student loans voluntarily during the forbearance period. Any amount you pay will reduce the principal balance on your loan(s).

Qualified Loans

Federal student loans owned by the U.S. Department of Education (DE) fall under the CARES Act. The pause on payments and interest will apply to these qualified defaulted and non-defaulted loans:

  • Direct Stafford Loans
  • Graduate (PLUS) Loans
  • Direct Parent PLUS Loan
  • Direct Consolidation Loans
  • Commercially-owned Federal Family Education Loans (FFEL)

You can check your student loan details in your Federal Student Aid account under the relevant loans tab.

Payments made on any of these qualified loans during the forbearance period are eligible for a refund. Credit bureaus will restore these loans to good status and remove delinquency marks from your credit report.

If your loan is not under the qualified list, there are other available options to pause or repay.

  • Non-DE loans will continue accruing interest, but you can request administrative forbearance with your loan servicer.
  • Subsidize your loans with economic hardship or unemployment deferment.
  • Check for refinancing options for private loans. You may also refinance federal student loans, but you might lose federal borrower benefits.

Student Loan Repayment Schedule

When does student loan repayment start? As long as there is an ongoing forbearance program, you do not have to worry about missing payments.

Keep yourself informed through forbearance updates from Federal Student Aid. Repayments should start as soon as the administrative forbearance ends.

Your loan servicer should send you a notification via email or mail before resuming collections. If you need more information about your loan servicer, you can check on your Federal Student Aid account who your servicer is, or call 1-800-433-3243.

Reduce Your Financial Stress

The government’s forbearance programs can play a crucial role in reducing your financial stress. Even if you don’t have to make payments on your federal loans now, consider paying what you can if you can afford it and don’t have other debt. Doing so can drastically reduce your debt-to-income ratio and help you achieve your financial goals.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

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.

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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.

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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.

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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.

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