GRAND RAPIDS, Mich. — Tens of millions of Americans are getting ready to make student loan payments for the first time since the pandemic paused them more than three years ago.
For many, it could be new territory of paying for the first time while others may need to get reacclimated with the system.
As payments officially restart on October 1st, borrowers will have multiple decisions to make on how to repay their student loans.
According to the Department of Education, the exact date on when student loan payments resume depends on each individual's due date.
Your monthly payments will depend on what repayment plan you choose. If you don't select a plan, you will be enrolled in the standard plan.
Types of repayment plans:
- Standard Repayment Plan
- Graduated Repayment Plan
- Extended Repayment Plan
- Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan
- Pay As You Earn Repayment Plan (PAYE)
- Income-Based Repayment Plan (IBR)
- Income-Contingent Repayment Plan (ICR)
- Income-Sensitive Repayment Plan
Borrowers will receive their first bill at least 21 days before their first payment is due.
The Better Business Bureau said they recommend to explore repayment options and choose a plan ahead of time, so you're full prepared and don't get scammed.
"Anytime you get an email or a phone call or text message or anything from someone claiming to have something to do with your loans, whether they're offering to help you with your loans, or they're claiming to be maybe your loan officer or the company holding your loans, or they're claiming to be the Department of Education. Again, do that homework, don't just reply, don't just take their word for it," said Katie Grevious with the Better Business Bureau in Western Michigan.
To note, if there is a government shutdown, borrowers will still need to pay their student loans.
Interest will continue to accrue, and due dates will remain in effect.
Anyone with questions on their loans or believes they can't pay them should visit the Department of Education's website.
