Do You Know the Status of Your Student Loans?
The student loan grace period ended in 2024, and repayment has officially resumed. But millions of borrowers haven’t taken action. Don’t keep your head in the sand. The longer you wait, the worse the damage.
It’s estimated that over 9 million borrowers have missed payments—and now their delinquent loans are being reported to credit bureaus. This can drop your credit score by over 200 points, making it harder to rent an apartment, get a car loan, or even secure employment in some cases.
Missing nine payments in a row puts your loans in default. Starting May 5, 2025, the government resumed aggressive, involuntary collections—garnishing wages, seizing tax refunds, and withholding Social Security and disability benefits.
Important: Broad-based student loan forgiveness was not implemented. You are still responsible for your loans, and the best time to take action is now.
Take These 4 Steps Today:
Step 1: Check your FSA account
Log in at studentaid.gov to find out:
- Who your loan servicer is.
- Your current loan balance.
- Your interest rate and repayment status.
- Whether your loans are in default and who’s managing them.
- If they’re in default, learn more about escaping default.
Step 2: Create an account with your loan servicer
Visit your servicer’s website and:
- Register or log in to your account.
- View your payment schedule, past due notices, and other correspondence in your inbox.
- Set up or update your payment method.
Step 3: Explore repayment plan options
You may qualify for a plan based on your income. Use the Loan Simulator to see payment amounts. These plans can:
- Lower your monthly payment.
- Keep your loans in good standing.
- Help you qualify for forgiveness down the line.
Step 4: Have a past due balance? Call your servicer now
Ask about:
- A retroactive administrative forbearance, which may bring your account current.
- Other options to stop collections before they start.
- If you cannot afford any repayment plan, ask about a deferment or forbearance.
