Oct. 1 ushers in some unwelcome news for people with federal student debt: After more than three years, tens of millions of Americans will be required to make payments on their federal student loans starting next month. 

Student loan payments were placed on hiatus during the COVID-19 pandemic. Now that they are starting up again, Capital Tonight spoke with Jordan Daniels, a student debt counselor at the Empire Justice Center. 

“We were given a break, luckily, from the federal government for these three years where we didn’t have to pay our student loans to give people more wiggle room to pay for the necessities,” Daniels said.

There is still in place a one-year grace period called the on-ramp period, during which, if you miss student loan payments, your credit will not be affected.

“This is not being well-advertised by loan servicers and the federal government,” Daniels said. “Anyone who is eligible for COVID-19 forbearance will be eligible for this on-ramp.”

The so-called “Save Income-driven Repayment Plan” began in August. It is a plan supported by the Biden administration that will help reduce monthly payments.

“It is the cheapest income-driven re-repayment plan for most borrowers coming up. It is the plan that you should be on if you plan to pursue any type of forgiveness,” she said.  

Daniels warns that you should only use this on-ramp if you’re in dire straits. 

For more information on the “on-ramp” visit www.StudentAid.gov (There is a loan simulator on this site, and much more).

If you live in New York state and you want to access loan forgiveness or cancellation, determine the best repayment plan for you, apply for consolidation, deferment or forbearance, get out of default, mediate with loan services and lenders or obtain referrals for other services, visit this website. They will provide free one-on-one student debt counseling services. 

You can also call 888-614-5004.