Student Loan Payment Restart

Student Loan Payment Restart

You’ve been paying your loans diligently for the past several years, and now you’re ready to start making progress on that debt. Congratulations! You’ll be happy to know that it’s not hard to get back on track with your student loan payments. In fact, once you know what steps to take—and which options are available—you can regain control of your finances and get back on track with a solid repayment program. Let’s get started learning more about how this works:

It’s time for you to restart your federal student loan payments.

• When you are required to begin making payments

You will be required to start paying back your student loans either:

• At the conclusion of the grace period if you’re a new borrower as of July 1, 2018; or
• After your grace period ends, which is six months after you leave school or drop below half-time enrollment status. If a student loan servicer has agreed with you on an alternative repayment plan, that plan may specify when payments must begin. In these cases, contact your servicer if you would like more information about how this affects your loan obligation and payment schedule.

In the past, you had a deferment or forbearance on your account that allowed you to temporarily stop making payments, or to make reduced payments, but that has expired.

In the past, you had a deferment or forbearance on your account that allowed you to temporarily stop making payments, or to make reduced payments, but that has expired.

If you have not returned to school after your grace period ended and are now working full-time, consider consolidating your loans into one monthly payment and pay less over time. Consolidating will also give you one easy place to go if you have questions about payment options for your loan or other issues related to student loans.

To learn more about consolidation: https://studentloans.gov/consolidation

Your loans are now due again, and will start accumulating interest..

• Your loans are now due again, and will start accumulating interest.
• Interest accrues on the principal balance even if you don’t make payments.
• The interest is capitalized at the end of every grace period. If you’ve already paid off some of your loan, it is likely that your next payment will be a bit higher than normal to account for all of this new accrued interest. This can be a good thing if it means that you’re catching up on payments (or better yet, paying off more than just the monthly minimum), but it can also be an unwelcome surprise if it means paying more than expected for something you weren’t expecting at all because of these changes!

If you’re still in school at least half-time, you may be able to regain deferment eligibility.

If you are still in school at least half-time, or if you were enrolled in school at least half-time for at least six months within the last 12 months and are now enrolled again, your loan servicer may be able to reinstate deferment status. If this is the case, they will send you a letter notifying you of this change. You will need to contact them directly and provide documentation confirming that it is indeed true—for example, an updated financial aid award letter with proof of enrollment and/or an updated transcript showing your current class schedule.

Contact your school’s financial aid office right away to find out what steps you need to take and how we can help.

Contact your school’s financial aid office right away to find out what steps you need to take and how we can help.

Use the contact information on your loan bill. You can also call or visit their website if you don’t have a copy of the bill handy.

If you’re having problems with payments, contact your servicer immediately and let them know that you’ve experienced an economic hardship (like losing a job) and need some flexibility in making payments so that they won’t be late or missed altogether.

If you’re not in school, there are several repayment programs to choose from, including ones with lower monthly payments. There might be some other options, as well. Call 1-800-4-FED-AID (1-800-433-3243) to find out more.

If you’re not in school, there are several repayment programs to choose from, including ones with lower monthly payments. There might be some other options, as well as special circumstances that may allow you to consolidate your loans at a reduced interest rate or even forgive them altogether. Call 1-800-4-FED-AID (1-800-433-3243) to find out more.

Here are the main types of repayment plans for borrowers who don’t have federal student loans:

• Income driven repayment plans
• Pay As You Earn (PAYE)
• Revised Pay As You Earn (REPAYE)
• Income Contingent Repayment Plan (ICR) and Graduated Repayment Plan (GCR)

Check your eligibility and reach out to your servicer if you have any questions.

If you’re eligible, you can restart your payments at any time. You’ll need to contact your servicer and provide them with the following information:

• Your name and social security number
• The name of your loan provider(s)
• The amount you want to pay each month

To learn how to reach out to your loan servicers, check out our guide on how to make student loan payments.

While student loans are one of the most common types of debt, we want you to know that you’re not alone. Millions of people have taken on student loan debt and started their repayment process, but there are also many options available for those who need help. If you feel overwhelmed by your payments or struggling with how to pay back what you owe us, don’t hesitate to reach out! We’re here 24 hours a day, seven days a week, ready to help answer questions about your account or assist in finding solutions that fit your budget.