What you need to know about student loan debt and repayments

EdSource

Ashley A. Smith

October 6, 2023

This month, payments on student loan debt for millions of borrowers across the country restarted after the three-year pandemic pause. California has some of the lowest tuition rates in the nation, but the state’s residents carry higher than average student debt balances, risky graduate school debt, and have a unique reliance on parent-held debt, according to a recently released report from The Century Foundation.

Here’s what borrowers need to know if they already have student loans:

When do repayments restart? 

The pandemic-era pause on federal student loan payments has ended. Repayment for most borrowers resumed Oct. 1. Interest has already restarted accruing, as of September. However, if you’re currently enrolled in school or recently graduated, then for most federal student loan types, you have a six- to nine-month grace period from the moment you graduate, leave school or drop below half-time enrollment. And for most loans, interest accrues during your grace period.

The U.S. Department of Education is giving borrowers a one-year “on ramp” to repayment through September 30, 2024, that prevents people from falling into delinquency or default if they miss payments. Interest will still accrue, but any missed payments won’t lead to negative credit reporting.

What repayment plans are available?

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