Friend,

Our nation’s student loan system is untenable. Student debt has more than doubled over the past two decades and U.S. borrowers owe a collective $1.6 trillion, surpassing both auto loans and credit card debt. Many borrowers owe more in interest than they had to borrow for tuition because Congress legislated high interest rates, then compounded the problem by prohibiting refinancing for repayment and loan forgiveness.

Even in these circumstances, and at a time when half of New York City households can’t afford the cost of living, the Supreme Court scuttled the Biden administration’s effort to relieve borrowers of up to $20,000 in student loan debt, placing increased financial strain on countless borrowers.

For those of us carrying student loan debt, myself included, October 1st will mark the resumption of loan repayments after a three-year pause. While I will continue to work at the state level to support borrowers and ease the strain, there are a few steps you can take to manage this impact now.

Here is a checklist to help you start planning for resumption of payments:

Update Your Contact Details at StudentAid.gov.
Identify & Contact Your Loan Servicer(s) on the site under “My Loan Servicers”. Your servicer may have changed during the payment hiatus. Confirm your monthly payment amount. Set up online accounts for each servicer.
Enroll in Autopay to Save. Though autopay is optional, you will save 0.25% on your interest rate and avoid the risk of accidentally missing a payment.
Explore Repayment Plans. StudentAid.gov’s loan simulator can calculate your student loan payments and provide repayment options that work best for you.
Check Your Eligibility for an Income-Driven Repayment (IDR) Plan. IDR plans can make your monthly payments more affordable based on your income and family size. There are four types of plans, with the SAVE plan (replacing the REPAYE plan) offering the most affordable payment plan ever offered and including the possible elimination of interest for both subsidized and unsubsidized loans. Some plans may cut payments to $0/month for those making less than $32,800 and save other borrows at least $1,000/year.
See If You Qualify for Loan Forgiveness. The Department of Education provides targeted forgiveness in certain categories such as public service employment, disability, and college wrongdoing.
Other Questions? The Department of Education has a robust FAQ available on their Prepare for Student Loan Payments to Restart page.

This Tuesday at noon I will be co-hosting a Taking Down Student Debt: Strategies for Repayment & Attaining Loan Forgiveness webinar in conjunction with colleagues, EDCAP, and the Community Service Society. Feel free to join us to receive expert guidance and get your questions answered. And I will continue fighting for student debt relief every step of the way.