OHIO — It’s now October and that means federal student loan repayments have restarted.
>>Federal student loan payments resume after pause due to pandemic
The Consumer Financial Protection Bureau found one in five people with student loans will likely struggle financially.
News Center 7 has previously reported on programs that are available to help.
This includes the SAVE program that lowers monthly payments based on income.
President Biden announced the SAVE plan last year, which is a new income-driven repayment plan where interest will not pile up as long as you make regular payments, the AP said.
>>Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
There is also the on ramp to payment.
For next year, borrowers are not reported to the credit bureaus for a late or missed payment.
Loans are not considered in default or sent to collections, but payments are still due, and interest will accrue.
>>Federal student loan repayments start soon; How people can get ahead, ease debt burden
There are $1.5 trillion in student loan debt.
The average student loan borrower owes more than $37,000, according to federal education data.
That is a cost on average of $300 a month.
The Biden administration hoped to make student loan payment transition smoother by forgiving up to $20,000 in student debt, CNBC reported. That transition plan was blocked over the summer by the Supreme Court.
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