Student loans set to start accruing interest in October

Local4 News at 5
Published: Sep. 1, 2023 at 9:47 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

HASTINGS, Neb. (KSNB) - Borrowers beware -- as of today student loan interest is accruing again, with many collectors expecting their first bill on October 1st.

Under the Federal *Save* repayment plan, you can have either a lower or no monthly payment at all.

Starting in October, the U.S. Department of Education will implement a 12-month “on ramp” to repayment, in which you would be shielded from certain financial consequences for missed payments.

But experts are saying to not ignore payments in hopes of a new bill that’ll forgive or re-freeze bills.

Dr. Ernie Goss, Creighton University Economics Professor says “You feel like, ‘Well, I’m not going to pay it. It’ll be resolved when other individuals are elected to office. The politicians will eventually settle it, and I’ll begin to repay once they settle it ' But will the administration wish to fund that program going forward?”

For borrowers, it’s important to re-evaluate your monthly bills so you aren’t hit with any nasty surprises when that first request drops next month.