Student loan repayments resume this month. To help Arizona borrowers navigate this process and see if they are eligible for saving, my office has put together this guide.
If you are having issues with your federal student loans, my team is here to help. Reach out here or call (602) 956-2463.
Saving on A Valuable Education (SAVE) Plans
In August, ED launched a new Income-Driven Repayment (IDR) plan, Saving on A Valuable Education (SAVE), that will significantly lower monthly payments for many low- and moderate- income borrowers and provide them with clearer and faster pathways to loan forgiveness. Under this plan, borrowers making less than $15 an hour will not have to make any payments and all other borrowers will save more than $1,000 a year on their payments, compared to other IDR plans. Moreover, under these plans, borrowers’ balances will not grow due to unpaid interest.
FOR BORROWERS: studentaid.gov/save
FOR ORGANIZATIONS SUPPORTING BORROWERS: saveonstudentdebt.org/weekofaction
Online Resources for Returning to Repayment
ED has published an array of accessible resources to help guide borrowers through the return to loan payments and interest accrual, including resources for borrowers who are restarting payments, repaying for the first time, or looking for the best repayment strategy.
FOR BORROWERS RESTARTING PAYMENTS: studentaid.gov/restart
FOR BORROWERS REPAYING FOR THE FIRST TIME: studentaid.gov/firstpayment
FOR BORROWERS TO LEARN ABOUT REPAYMENT OPTIONS: studentaid.gov/loan-simulator
FOR BORROWERS CREATING/FINDING THEIR FSA ID: studentaid.gov
Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness programs allows eligible borrowers employed by a federal, state, local, or tribal government or nonprofit organization to have the remaining balance of their Direct Loans forgiven after making the equivalent of 120 qualifying monthly payments.
One-Time Account Adjustment for IDR & PSLF
Last year, ED announced a one-time account adjustment for IDR and PSLF plans to address past inaccuracies, forbearance steering, and deferments. Borrowers may be eligible to receive credit for past periods of repayment, forbearance, and deferment that would otherwise not qualify for IDR or for PSLF.
Fresh Start Program
Fresh Start is one-time, temporary program that offers borrowers a path out of default and restores their access to federal studentaid. Borrowers who access this program will be able to end collections on defaulted loans, remove default from credit reports, and enroll in a repayment plan, including IDR plans.
FOR BORROWERS WITH LOANS IN DEFAULT: studentaid.gov/announcements-events/default-fresh-start