Your payment can be as low as $0 per month. You can also recalculate your payment based on your most recently filed IRS tax return on file or a recent pay stub. If your household income has decreased significantly since before the pandemic, consider an IDR plan. Your payment could go up or down when the suspension period ends depending on whether you paid down any interest or principal during the suspension period and whether any interest capitalizes when the suspension period ends. This calculation is based on the current balance (principal and interest) and the remaining repayment period on the loans when the suspension of payments ends. If you’re on a standard, graduated or extended plan, your loan servicer will recalculate your payment. What do servicers use to recalculate loan payments? With that said, you might have to recertify closer to payments resuming come October or wait until your postponed recertification anniversary date. Now, its guidance simply states that your recertification date has been pushed out from your original recertification date, and that you’ll be notified of your new recertification date before the deadline. Previously, Student Aid advised that all recertifications between Mar. What’s unclear, though, is when borrowers have to recertify their income to update their payments. What will my payment be when payments start again?įor those on an income-driven repayment (IDR) plan, your payment will resume at what it was prior to your payments being suspended. Auto-debt payments are said to resume automatically. Prepare for student loan payments to resume in August 2022. Student Aid’s guidance says that you’ll receive a billing statement or notice at least 21 days before your payment is due. In anticipation of payments resuming, here are a few frequently asked questions, based on what we know today so you can prepare. This gives federal loan borrowers almost 2 years of paused payments at 0% interest. President Biden extended student loan relief until August 29, 2023.
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