Navigating the Restart of Federal Student Loan Payments: What Borrowers Should Know

As federal student loan payments are set to restart in less than two months, borrowers are seeking ways to ease the burden. The Biden administration's new plan, called SAVE, aims to cap monthly payments at 5% of discretionary income and offers loan forgiveness after a certain number of years. Some companies, such as Google, Aetna, and Adidas, are also stepping up to help employees with their student loans by offering matching contributions. Borrowers are advised to take inventory of their debt, consider income-driven repayment plans, pay off what they can before interest resumes, automate payments, and stay informed about their options. Refinancing may not be beneficial for those eligible for income-driven plans or loan forgiveness.