Student loans forgiveness; what you need to know now in 2023. Back in March of 2020 President Trump put a pause on payments on federal student loans. The plan temporarily set interest rates at 0%. Now interest on all federal loans begin accruing in September and regular payments resume in October. All borrowers should receive a statement at least 21 days prior to when their first payment is due from the U.S. Department of Education. The notice will include both the due date and the required payment amount.
What borrowers should do
First, make sure you can log into studentaid.gov and verify your contact information. Your dashboard will have your loan details including your loan servicer and current payment plan option. Based on the information, go to your loan servicer’s web-site and log in to your profile or create a new one to set up your automatic payments. Then use their loan simulator to find out what payment plan meets your needs the best.
Second, I highly recommend borrowers plan ahead and be proactive in the process. Establish a habit now of setting aside a monthly loan payment before the due date. Deposit the amount into a savings account. This will give you ample time to adjust your budget as needed before the actual payment is due.
If one cannot afford their payments, they should contact the loan provider and discuss a deferment or a forbearance that will suspend payments. However, keep in mind that the interest will start accruing again.
