Millions of federal student loan borrowers are no doubt dreading the arrival of October. The reason? Next month, federal student loan payments are set to resume after a years-long pause. And borrowers who got used to not making payments might now have to scramble to come up with that money.
While federal student loan payments will generally be coming due starting in October, you might end up getting a bit more time to make your first payment. Here's why.
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You might get some much-needed leeway
Federal student loan payments were put on pause in March of 2020 when the nation was deep in the throes of the COVID-19 outbreak. During the early stages of the pandemic, unemployment rose to a record high, and many people could barely afford to put food on the table, let alone find the money for loan payments. So borrowers were given a reprieve in light of the broader crisis -- a reprieve that lasted well over three years.
At this point, many federal student loan holders will have to gear up to make payments to their loan servicers next month. But you might get extra time, depending on when you made your last loan payment.
It may be that you made a payment on your student loans in 2020 a few days after the pause was announced because you didn't realize you were entitled to that break and it was too soon for your loan servicer to inform you of it. If that's the case, that 2020 payment may have been recorded as an extra payment, buying you one extra month to make your upcoming payment.
Furthermore, some borrowers opted to keep making payments on their student loans during that multiyear pause. If you went that route, you may not have to make a payment in October if you don't want to or can't afford to. Rather, it may be that the extra payments you made have been banked so that you get more leeway on when your next one is due.
Contact your loan servicer before October
If you're not sure exactly when your next student loan payment is due, your best bet is to contact your loan servicer now -- ahead of that deadline. Your loan servicer can not only make sure you're aware of your payment's due date, but also walk you through some options if you can't swing your October payment.
One option, for example, may be to change your repayment plan so you're looking at a smaller loan payment on a monthly basis. You may even be eligible for an option like forbearance if you're experiencing a financial hardship, like the loss of your job.
Millions of student loan borrowers will likely end up having to pay their loan servicers some amount of money next month. But that doesn't automatically mean you fall into that category. So it pays to contact your loan servicer now to understand exactly what your personal time frame looks like.
