Student loans payments return for over a million Virginians
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Student loan payments are back for Virginians for the first time since 2020.
Driving the news: Federal student loan payments came due again this month, affecting about 1.1 million Virginia residents with student debt.
Why it matters: The three-year pause on student loan payments gave borrowers a reprieve during the pandemic. But borrowers must factor those payments into their monthly budgets — and some may struggle to do so.
State of play: Just over 1.1 million Virginians owed a collective $43.8 billion in federal student loan debt as of June 30, according to the U.S. Department of Education. The average owed was $39,561.
- In July, President Biden announced that some borrowers who have been paying for decades — including about 21,500 in Virginia — would have their debt forgiven.
- But that still leaves nearly a million residents who have to start making payments again this week.
Of note: Biden's earlier student loan forgiveness plan, which would have relieved up to $20,000 in federal debt per borrower, was struck down by the Supreme Court in June.
Be smart: Late payments won't be reported to credit bureaus or negatively affect your credit score through Sept. 30, 2024.
Plus: Borrowers can sign up for a new income-driven repayment plan, the SAVE plan, which the White House estimates will save the typical borrower about $1,000 per year.