Nearly 9 million borrowers missed their first student loan payment after the pandemic-related pause ended this fall, the Department of Education said Friday.
That means roughly 40% of the 22 million borrowers who had bills due in October did not make payments by mid-November.
Bringing so many borrowers back into repayment at the same time was expected to be a challenge. The new data is the first glimpse into how many people may be struggling to afford their student loan bills after the three-plus-year freeze.
For comparison, fewer than 26% of borrowers missed their payment in October 2019, before the pause went into effect, the Department of Education told CNN.
But borrowers who miss payments through September 2024 won’t face significant penalties thanks to an on-ramp period created by the Biden administration. During that period, borrowers won’t be reported as delinquent or in default to the three national credit bureaus. But interest will continue to accrue.
“While most borrowers have already made their first payment, others will need more time. Some are confused or overwhelmed about their options,” Undersecretary of Education James Kvaal wrote in a blog post Friday explaining the new repayment figures.
It may take time for some borrowers to figure out how much they owe each month and how to fit the payment back into their budget after the long pause. Some may want to enroll in a different repayment plan to reflect possible changes to their financial situations.
Millions of borrowers have a different student loan servicer than they did before the pause went into effect. Complicating matters further, some borrowers encountered hourslong wait times when calling their servicer with questions as the pause ended.
There are potentially millions more student loan borrowers who didn’t make their October…
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