LAS VEGAS (KTNV) — The waiver on student loans accruing interest officially ends on Friday, September 1.
The pause saved roughly 40 million borrowers more than $5 billion since interest on student loans stopped in March 2020 to provide economic relief at the onset of the pandemic.
The interest reinstatement on student loans impacts about 350,000 Nevadans, more than half of whom are over 35. Nevada's average student loan debt is $33,743 per borrower, below the national average of $37,720.
While interest on student loans begins accruing in September, repayments do not begin until October 1st. Financial Analyst Steve Budin says that there’s still a grace period to begin repaying student loans.
“One of the things that is in the repayment requirement legislation is something called a ’12-month transition period,’" Budin said. “So it gives all borrowers the time to adapt to a new repayment plan without risk of going to collections or defaulting.”
Budin encourages borrowers to start planning and budgeting student loan payments by contacting the loan servicer to apply for income-driven repayment plans. One is the SAVE program initiated by President Joe Biden. Borrowers who sign up for this repayment plan could see their monthly payments cut in half or even reduced to $0.
To apply for the SAVE program, go to the U.S. Education Department Federal Student Aid website.
