In light of the Supreme Court's ruling on student loan forgiveness, the Biden Administration took two steps to provide debt relief for as many borrowers as possible.
Student loan payments will begin again in October 2023. However, the Department of Education is instituting a 12-month “on ramp” to repayment from October 1, 2023 to September 30, 2024 so that financially vulnerable borrowers who miss monthly payments are not considered delinquent.
The Department of Education is creating a new affordable income-driven repayment plan that will save the average borrower more than $1,000 a year on payments. It will raise the amount of income that is protected from repayment, forgive balances after 10 years of payments instead of 20 years, and not charge borrowers with unpaid monthly interest. Click here for more information.