Congratulations on nearing the completion of your college journey. Now, alongside job hunting, you’ll soon face the challenge of managing your student loan repayments.
Experts emphasize the importance of thoroughly understanding available repayment options, especially as the federal student loan system is currently experiencing considerable changes.
After a prolonged pause on payments and collections during the pandemic, the student loan system is now gradually resuming full operation. However, legal challenges to more affordable repayment programs and proposed changes in legislation have complicated the landscape for new borrowers.
Borrowers are entering repayment amid uncertainty about which plans will remain accessible, according to specialists in student loan assistance.
One notable plan, SAVE, introduced under the current administration, aimed to lower monthly payments based on income and household size. Yet, this option is currently suspended due to ongoing legal disputes and may not be available moving forward.
Meanwhile, three other income-driven repayment plans continue to be offered, though their terms could be altered by pending legislation that seeks to consolidate these options into a single program.
