As the World Health Organization ended the COVID-19 public health emergency, Congress has decided to resume student loan payments. Starting this September 1st, student loans will begin accruing interest again and payments will be due October 1st. After the Supreme Court ruled against Biden’s student loan forgiveness plan, millions of Americans are scrambling to find the funds to repay their loans this October. Families that were put in troubling situations due to the pandemic, fears of a recession, or simply by unexpected financial expenses were forced to redirect their student loan payments towards other pressing expenses are struggling to find the money to pay off loans starting this October.
Student loan resumption for us as students means that our Direct Unsubsidized Loan and Parent PLUS Loan balances will begin to grow with interest this month. Our Troy Phi Class of 2023 will begin paying off their loans towards the end of this year and seniors will have to consider loan payments in their job search this year. Although debt forgiveness fell through, there is a year long grace period where no borrower will default after missed payments. A new SAVE Repayment Plan will also be rolled out offering monthly payments lower than the previous income-based repayment plan. For more ways to deal with the resumption and defaulting loans, check out this article: Student loan interest resumes Friday and payments restart in October. Here’s what borrowers should know.
If you’d like to connect with other students facing these struggles, address the issues we face on campus and communities, and build unity with other Filipino youth, join Kabataan Alliance at their Town Hall on Zoom!
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