From March 2020 through October 2023, federal student loan payments were paused in response to the pandemic.
Starting in October, missing payments could lead to default, collections and damage to your credit report.
If your loans are in bad standing due to missed payments, you have until 3 a.m.
This deadline was previously Sept. 30.
Here’s what these changes mean if you hold student loans.
Loan servicers were also instructed not to report missed payments to the credit bureaus during this window.
Starting on Oct. 1, this will change.
Late payments can now be reported to credit bureaus, which could damage your credit score.
Defaulting on student loans can have a host of negative consequences.
“This can include late fees, negative credit reporting and default.”
You just have to enroll in the program online or over the phone by Oct. 2 at 3 a.m.
ET to get your loans back into good standing.
These benefits will also end for your defaulted loans if you decide not to apply for Fresh Start.
There are still steps you might take tomanage your education debtand avoid default:
