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Student Loan Restarts, Relief and Changes for Borrowers as Repayments Resume

Student loan restart
Student loan restarts as borrowers are getting ready to resume repayments after a three-year pause due to the pandemic. (PHOTO: Debt.com)

Student Loan Restart: Federal Borrowers Prepare for End of COVID-Era Pause

Student loan restarts as borrowers are getting ready to resume repayments after a three-year pause due to the pandemic, with a 12-month “on-ramp” period to provide relief for missed payments.

Student loan restart

Student loan restarts as borrowers are getting ready to resume repayments after a three-year pause due to the pandemic. (PHOTO: CNN)

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Student Loan Restarts as Borrowers Gear Up for Resumption After Three-Year Pause

Federal student loan borrowers in the United States are preparing for student loan restart after a three-year break. This pause, initially triggered by the COVID-19 pandemic in March 2020, will officially end in October, according to the U.S. Department of Education. These borrowers, whose loans began accumulating interest on September 1, will soon receive notifications about the amount they owe and the due dates, with a 21-day notice before the payments kick in.

The student loan restart also covers recent graduates who will also benefit from this pause extension, as they won’t need to start making payments until their grace period concludes (6-9 months after graduating).

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Crucial Relief Measures During the Student Loan Restart

According to Washington Examiner, one important relief measure is a 12-month “on-ramp” period during which the Department of Education will not report late or missed payments as delinquent.

However, it’s important to note that credit scoring agencies may still consider these delays.

This protection applies only to loans eligible for the student loan restart and payment pause. Borrowers will find relief as it includes various loan types such as direct loans, Federal Family Education Loan Program loans, Federal Perkins Loans held by the Education Department, and more.

Millions of borrowers should expect to receive billing statements from their loan servicers in the coming weeks as the process of repayment resumes. This student loan restart marks a significant shift in financial responsibility for many Americans who have been navigating the economic challenges posed by the pandemic.

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