Student loan repayments were suspended until January. Here’s how to prepare for reboot | Personal finance
Legislatively, efforts by House Democrats to extend abstention until September 30, 2021 have stalled. Another relief bill could include a longer forbearance extension; no detailed viable plan has yet emerged.
For now, expect payments to start again after January 31.
What can borrowers expect in the new year?
“The situation is confusing. I don’t know how to get out of this, ”says Scott Buchanan, executive director of the Student Loan Servicing Alliance. “We try to be careful with our communication.
When your payments restart, Buchanan says:
- Expect your payment date to stay the same as before.
- If you have already signed up for automatic payment, you will receive a notification before a payment is debited.
- First-time borrowers should monitor their inboxes and mailboxes to be notified of their new bill date.
“What we’ve worked hard is to make this as transparent as possible to people who are used to it,” Buchanan said, noting that the loan management system was not supposed to shut down and shut down. turn on (and, potentially, turn off and on again).
What is particularly troubling about the massive reboot of payments is the belief expressed by the federal student aid office in a recent report that he and his “services will face a heavy burden for” converting millions of borrowers into active repayment at the same time, with a certain proportion becoming delinquent, at least initially. The Ministry of Education did not respond specifically.