Student loan payments resume for 1.8 million Ohioans
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The monthly budgets of more than 1.8 million Ohioans will change this month.
Driving the news: October marks the end of the pandemic pause on federal student loan payments.
Why it matters: After a three-plus-year break from payments, experts warn of a messy return to debt repayment for borrowers, Axios' Kelly Tyko writes.
- Student loan debt will especially be tough on younger people, who typically have lower incomes.
Catch up quick: More than 37,000 Ohio borrowers are eligible to get their combined $1.7 billion in debt erased following loan relief adjustments to Income-Driven Repayment plans implemented by the government in July.
Yes, but: That still leaves more than $60 billion of student loan debt for Ohioans, most of which will be paid back starting this month.
Zoom out: More than 40 million Americans, who collectively owe more than $1 trillion in student loans, will have to make loan payments again.
Zoom in: Ohio has the sixth-highest number of borrowers in the country, according to the U.S. Department of Education.
- More than half of those borrowers are under age 35.
What's next: Due dates for the first payments vary, but the Department of Education says borrowers will get a bill, with payment amount and due date, at least 21 days before the due date.
- Borrowers can apply for the new federal SAVE Plan, an income-driven repayment plan that calculates monthly loan payments based on income and family size.
- The Biden administration also created a yearlong "on-ramp period" during which borrowers won't be reported to the national credit rating agencies if they default on payments.
💠Troy's thought bubble: Biden's original student forgiveness plan, which the Supreme Court rejected, would have wiped out the rest of my debt.
- I'd rather spend my monthly payment on my kids.
Be smart: Use this Axios explainer to figure out your student loan status.