Student Loan Repayments Start in October: Know Your Servicer Sooner Rather Than Later

"Interest resumes building on federal student loans beginning in September after more than three years at 0% during the pandemic-related payment pause. But for many college borrowers restarting monthly payments in October won't be as simple as just sending money to the same old loan servicer from a few years back," Detroit Free Press reports.

..."The transition to making payments could be daunting. Borrowers shouldn't just wait until they receive a bill, said Rachel Rotunda, director of government relations for the National Association of Student Financial Aid Administrators, a nonprofit group that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools nationwide.

After all, the repayment system is restarting for tens of millions of borrowers at once, she said, which could bring its own unique challenges.

Borrowers who were in school at the start of the pandemic or had recently graduated, Rotunda said, might want to take extra care to make sure their contact information is updated. These borrowers never have made a monthly payment or had contact with their servicer because their federal student loans were covered under the CARES Act student loan forbearance program."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 8/24/2023

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