Student loan payments due for nearly 1 million Hoosiers
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More than 900,000 Hoosiers are making federal student loan payments for the first time in three years.
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 19,000 Indiana borrowers are eligible to get their combined $933 million 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 $29 billion of student loan debt for Hoosiers, most of which will be paid back starting this month.
Zoom out: More than 40 million Americans collectively owe more than $1 trillion in student loans.
Zoom in: Indiana has the 14th-highest number of borrowers in the country, according to the U.S. Department of Education.
- Nearly 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.
💠Arika's thought bubble: Ya girl is one of those borrowers restarting payments.
- The payment pause allowed me to save for things that seemed out of reach before — like a new car and a wedding.
Be smart: Use this Axios explainer to figure out your student loan status.