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A12 BUSINESS
Monday 2 october 2023

Federal student loan payments are starting

again. Here's what you need to know

By ADRIANA MORGA
Associated Press
NEW YORK (AP) — Federal
student loan borrowers will
need to start making pay-
ments again this month af-
ter a three-year-plus pause
due to the pandemic.
You should expect a bill
that lays out how much
you have to pay each
month at least 21 days be-
fore your due date. It's likely
that most borrowers have
received their bill already
but if you have not, visit
your loan servicer account.
Interest started accruing The Southern University Human Jukebox marching band warms
again in September. up before the 2023 National Battle of the Bands at NRG Stadium,
If you have student loans Saturday, Aug. 26, 2023, in Houston. Associated Press
and haven't made a pay-
ment in the last three years, PAYMENTS WILL BE? Borrowers can use the
don't panic. Here's what Borrowers can find out loan-simulator tool at Stu-
experts recommend: what their monthly stu- dentAid.gov or the one
WHERE DO I START? dent loan payment will be on TISLA's website to find
The first step is to log in to on their account with their a payment plan that best
your StudentAid.gov ac- loan servicer. If you don't fits their needs. The calcu-
count and check who know who your servicer is, lators tell you what your
your loan servicer is. Many you can find it by logging monthly payment would
loan servicers changed in your studentaid.gov ac- be under each available
during the pandemic, so count. plan, as well as your long-
you might have a different WHAT IF MY PAYMENTS ARE term costs.
one than you did back in TOO HIGH? WHAT'S AN INCOME-DRIV-
March 2020, said Amy Czu- If you think you'll have a EN REPAYMENT PLAN?
lada, outreach and advo- hard time making pay- An income-driven repay-
cacy manager at the Stu- ments once they resume, ment plan sets your month-
dent Borrower Protection you have several options. ly student loan payment at
Center. This summer, President an amount that is intended
Once you know your loan Joe Biden announced a to be affordable based on
servicer, you'll log into your 12-month grace period to your income and family
account with them to ac- help borrowers who strug- size. It takes into account
cess your student loan bal- gle after payments restart. different expenses in your
ance, monthly payment You can and should make budget, and most federal
amount and interest rate. payments during the first 12 student loans are eligible
Czulada also recommend- months after payments re- for at least one of these
ed that you look at which sume, but if you don't, you types of plans.
type of student loan you won't be at risk of default Generally, your payment
have, so you know which and it won't hurt your credit amount under an income-
income-driven repayment score. Interest will accrue driven repayment plan is a
plans you might qualify for. whether you make pay- percentage of your discre-
Lastly, update your per- ments or not. tionary income. If your in-
sonal information in your Betsy Mayotte, president come is low enough, your
account with your loan of The Institute of Student payment could be $0 per
servicer to make sure you Loan Advisors, recom- month. Last year, the Biden
receive all important cor- mends that you research if administration announced
respondence. you qualify for an income- a new income-driven re-
HOW DO I KNOW WHAT MY driven repayment plan. payment plan. The SAVE
plan offers some of the
most lenient terms ever. On
this plan, interest won't pile
up as long as borrowers
make regular payments.
It's still possible that the
SAVE plan could face legal
challenges similar to the
one that led the Supreme
Court to strike down Biden's
proposal for mass student
loan cancellation.q