Federal student loan payments are set to restart in October after a three-year forbearance pause.
The vast majority of borrowers think they'll face financial hardship due to student loan repayment. About half say they'll have a hard time paying other bills, 43% will have to postpone other financial goals, and 36% won't be able to contribute toward their savings, the US News and World Report found.
“If House Republicans shut down the federal government, the Biden administration must shut down the student loan system, too,” Mike Pierce, executive director of the Student Borrower Protection Center, said in a statement. “As it stands, the Administration plans to keep paying the student loan companies botching this effort to restart payments while furloughing the federal employees who are supposed to help borrowers when things don't go according to plan.
“Even if Republicans needlessly shut down the government, loan payments will continue to be due starting this month,” an Education Department official said, noting a prolonged shutdown lasting more than a few weeks could substantially disrupt the return-to-repayment effort and long-term servicing support for borrowers.
Borrowers still can take advantage of the 12-month on-ramp during which missed or late payments won't be reported. Borrowers do not have to register for this on-ramp.to find out who their loan servicer is, their monthly payment amounts, and to enroll in an income-driven repayment plan, like SAVE.
Ronda is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government. Follow her on Twitter
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