Congress recently passed a law preventing further extensions of the Federal Student Loan Payment Pause. Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October. The Department of Education will notify borrowers well before their payments are set to restart.
Six Steps to Help Prepare for Loan Repayment
- Update your contact information in your profile on your loan servicer’s website and in your studentaid.gov profile.
- Get info about your next payment by logging into your loan servicer’s website and view your billing statement from your loan servicer, which will include:
- Payment due date
- Upcoming interest
- Payment amount
** Your payment will be due no sooner than 21 days after your servicer sends the billing statement.
Current Loan Servicers
|Great Lakes Educational Loan Services, Inc.||mygreatlakes.org|
|Default Resolution Group (also known as Maximus Federal Services, Inc.)||myeddebt.ed.gov|
- Explore repayment options by using the Loan Simulator, to find a repayment plan that meets your needs and goals or to decide whether to consolidate.
- Request placement in a repayment plan that results in the lowest payment amount. 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.
- If one of the repayment plans does not work for you right now, you may request to temporarily pause or lower your payments through short-term relief (deferment or forbearance).
- Understand what happens if you don’t repay your loan. If you miss a payment, your loan becomes delinquent.
- If your loan is delinquent for 90 days or more, your loan servicer will report the delinquency to the three major national credit bureaus. Delinquency will affect your credit score, making it harder to get credit.
- After 270 days, your delinquent loan goes into default. When you default on a loan, here’s what happens:
- You can lose your access to more student aid.
- The default status will damage your credit score.
- The government can take your tax refund, or part of your Social Security benefits, or up to 15% of your paycheck to pay off your defaulted loan.
For additional guidance and information on Student Loan Repayment: Student Loan Repayment Resources