Starting Tuesday, many federal student loan procedures will begin to look more like they did pre-pandemic.

A one-year grace period, or “on-ramp” for those who miss a payment or are in default or delinquency, is ending, as is a program that allows borrowers a "fresh start" if their loans aren't in good standing.

“The federal government paused all of their federal student loan collection efforts to help borrowers transition out of the COVID pandemic,” said Sandy Budd, supervising attorney for Empire Justice Center. "Starting tomorrow, the federal governement will commence collection efforts." 

The fresh start program, however, got an 11th hour extension to Wednesday at 3 a.m. EST.

The program allows borrowers to easily get their loans back into good standing, even if they were in default or delinquency.

With the programs ending, borrowers are facing enforcement realities that haven’t been in place since before the pandemic.

“The federal government will take advantage of the collection efforts they have for federal loans, which include wage garnishment, interception of social security benefits and or tax refund,” Budd said, noting that the federal governemnt doesn't have to go to court to enforce those measures the way private student loan companies do. 

That’s why Leslie H. Tayne, founder and managing director of the Tayne Law Group, is urging borrowers who are at risk to take advantage of the extra time to apply for Fresh Start.

“Now is the time to take that opportunity. Once it’s over, your student loans will continue to be in default,” she said.

She warned that not taking the opportunity to get on track could have long-term consequences.

“It would negatively impact their credit score, and ultimately, opportunities to borrow, get jobs,” she said.

Student loans haven’t played the prominent roll in the 2024 presidential campaign that they did in 2020. 

Vice President Kamala Harris has touted what the Biden-Harris administration has accomplished and suggested she will continue to push similar policies. Former President Donald Trump has been sharply critical of student loan forgiveness and the Biden administrations efforts, but offered few specifics as to his own plans.

According to Budd, what we do know is that court battles over the Biden administration’s efforts to restructure student loan programs will likely stretch past Election Day.

“It will be a matter of months if not longer before we have any definitive guidance as far as what the repayment landscape looks like,” he said.

A hearing in the case to determine the fate of the SAVE program is scheduled for Oct. 15.