Federal student loan updates

young educator at desk in classroom

January 2024 Edition

The federal student loan landscape is ever-changing, so it’s important to stay informed and know your options. Our Student Loan Solutions program can help you navigate these changes, manage your student loans, apply for federal loan forgiveness and get on a path toward a brighter financial future.

Sign up for your complimentary Student Loan Solutions account and learn more about the latest student loan updates below.

Changes to Income-Driven Repayment (IDR) Plans

The Department of Education (ED) recently introduced the Saving on a Valuable Education (SAVE) Plan, replacing the Revised Pay As You Earn (REPAYE) Plan. It features unique benefits for borrowers with even more money-saving benefits coming in 2024.

  • Lower payments: The SAVE Plan lowers payments for almost all people compared to other IDR Plans — with some seeing payments as low as $0. If you're working toward PSLF, your IDR or SAVE Plan payments count toward qualifying payments, no matter how low they may be (even $0).
  • Interest benefit: The SAVE Plan also prevents student loan balances from growing due to unpaid interest. Any accrued monthly interest not covered by a borrower's full monthly payment will be eliminated and will not be added to the borrower's overall balance.
    Borrowers already on the REPAYE Plan will automatically get the benefits of the new SAVE Plan.

Learn more at https://studentaid.gov/announcements-events/save-plan.

One-time IDR Account Adjustment

ED will conduct a one-time review of past payments for borrowers working toward PSLF, and it will adjust borrowers' qualified payment counts to include payments that may not have credited toward your forgiveness in the past for a variety of reasons.

Deadline for Non-Direct Loans: To benefit from this one-time account adjustment, borrowers with Non-Direct Loans must apply for a Direct Consolidation Loan by April 30, 2024.

There is no deadline to apply for PSLF with this one-time account adjustment, but borrowers are encouraged to submit all necessary PSLF forms as soon as possible.

Learn more at https://studentaid.gov/announcements-events/idr-account-adjustment.

Student loan payments resume

Billing and payments on federal student loans have resumed — and ED is providing a 12-month "on ramp" period for borrowers facing difficulties with resuming payments.

Through September 2024, borrowers who are unable to make monthly payments (for whatever reason) will be protected from negative actions, like defaulting on their loan(s), negative credit activity reporting or being reported to collections for non-payment.

During the on-ramp period, borrowers on track for PSLF will not receive credit toward qualifying payments for months of non-payment.

Learn more at https://studentaid.gov/manage-loans/repayment/prepare-payments-restart.

Federal student loan forgiveness programs are more flexible and affordable than ever — and we want to help you take advantage!

Ready to get started?

Sign up for your complimentary Student Loan Solutions account today!

Want more information?

Visit our Webinars page to register for an upcoming Student Loan Solutions webinar.

Source: Source: Studentaid.gov

The information provided here is for general informational purposes only and should not be considered a recommendation, tax or legal advice. Horace Mann’s Student Loan Solutions program includes services provided by an independent third party, Tuition.io. Horace Mann is an independent company not affiliated with the Department of Education or the federal government. Horace Mann does not negotiate, adjust or settle debts. No assistance provided by Horace Mann constitutes official action for purposes of student loan forgiveness programs or guaranteed results. Horace Mann’s Student Loan Solutions program terms are subject to change.