What To Do If You Get ‘Final Notice’ Over Student Loan Change
Summary
Millions of people with federal student loans are getting "Final Notice" warnings from the government. These notices give borrowers 30 more days to pick a new repayment plan after the previous SAVE plan ended, or the loans will move to a fixed-payment plan that may cost more each month.Key Facts
- The SAVE repayment plan ended after a federal court order in March.
- Borrowers first had 90 days starting July 1 to choose a new plan.
- If borrowers do not choose a plan within that time, they get a "Final Notice" giving 30 extra days.
- After that, loans will be put into a fixed-payment plan, which may have higher monthly payments.
- Over 7 million borrowers were enrolled in SAVE, which based payments on income and family size.
- The new fixed plans are called Standard or Tiered Standard Repayment Plans.
- Ignoring these notices can harm credit scores and lead to wage garnishment.
- Borrowers should use the Federal Student Aid Repayment Calculator to find the best repayment option for their situation.
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