Loan Forgiveness
On June 30, 2023, the U.S. Supreme Court struck down the program that would have provided loan forgiveness.
The U.S. Department of Education continues to develop additional ways to assist students in light of the Court’s decision.
Repayment Restart
Both interest and repayment were previously paused due to the COVID national emergency. Legislation by Congress on June 2, 2023, to extend the debt limit and stave off U.S. default also restored interest accumulation on student loans beginning September 1, 2023, and tirggered loan repayment to restart in October 2023.
Loan repayment plans have expanded and include the new SAVE Plan. Borrowers should review options to best address their situation. Always explore how reducing monthly repayment costs might also add to the length of your loan (and associated interest) while in repayment. Learn other ways borrowers are being supported as they return to repayment.
Students should work closely with the U.S. Department of Education and loan servicers toward repayment efforts, with loan management, and to avoid default.
Beware of Scams
With the previously announced student debt cancellation and repayment now restarting, a new wave of scams began trying to gain access to personal and financial information. The Federal Trade Commission (FTC) and U.S. Department of Education (ED) remind borrowers to be on alert.
Department of Education loan assistance does not have a fee, and borrowers never have to pay for information or pay to sign up for any federal loan management or repayment program. Additionally, borrowers will not receive calls or texts about programs. ED emails will come from the following addresses: noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, or ed.gov@public.govdelivery.com.
Web links should only take you to https://studentaid.gov. You can always bypass any links of concern in an email and go directly to that official website for federal student aid information.
Report any suspicious activity to the FTC.