Major Student Loan Deadline Passes: What to Do if You Missed It
Summary
The October 29 deadline passed for the earliest group of borrowers leaving the federal SAVE student loan plan, but deadlines vary because loan servicers sent notices in waves. Borrowers who miss their individual deadline can still apply for an income-driven repayment plan and should check their loan accounts to see what plan they have been assigned.Key Facts
- The Education Department said transition notices would go to 7.5 million borrowers enrolled in the SAVE plan.
- Servicers began sending transition notices on July 1, and borrowers were initially given at least 90 days to choose another repayment plan.
- An additional final notice gave the earliest group of borrowers about 30 more days, setting their deadline at October 29.
- Individual deadlines differ because servicers sent notices in waves.
- Borrowers who do not choose a plan by their deadline may be placed in the Standard Repayment Plan or Tiered Standard Plan, depending on their loans.
- Payments under those fixed-payment plans may be higher than payments under income-driven plans.
- Borrowers can still apply for an alternative income-driven repayment plan after missing a deadline.
- The article says servicers must provide the new monthly payment amount at least 21 days before the first payment under the new plan is due.
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