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Student Loan Repayment Information

With the Supreme Court frustratingly blocking student debt forgiveness and the COVID-19 emergency pause on federal student loan repayments ending this month, Oregonians with federal student loan debt need to be prepared for their first payments to be due in October.Here’s what student loan borrowers need to know:

  • The main federal page every borrower should be familiar with is studentaid.gov.
  • Oregon also has an informative Student Loan Help Page, including a new Student Loan Ombudsperson with a multitude of resources including FAQ, Borrower Rights, and local debt counseling. Bookmark: Student Loan Help: State of Oregon.
  • U.S. Department of Education’s Fresh Start Program aims to get defaulted borrowers back on track. Defaulted borrowers can take advantage by visiting https://studentaid.gov/announcements-events/default-fresh-start or calling their servicer today at 1-800-4-FED-AID (1-800-433-3243).

While work continues to provide fair and equitable student debt relief, there are many tools available to ease the burden of these payments. Here are a few options:

  • SAVE PLAN – The Biden-Harris Administration recently announced the Saving on a Valuable Education (SAVE) Plan to significantly lower monthly payments and reduce interest costs. Borrowers can learn more and sign up by visiting studentaid.gov/save-plan.
    • You will not owe loan payments if you are a single borrower earning $32,800 or less or a family of four earning $67,500 or less.
    • Borrowers earning more than these amounts will save at least $1,000 per year compared to the current income-driven repayment plans.
    • The Biden-Harris Administration’s SAVE Plan will cut many borrower’s monthly payments in half from 10% of adjusted income to 5% of adjusted income.
    • The SAVE Plan will not take effect until summer of 2024, unless you are already in a REPAYE plan previously. Borrowers who were in a REPAYE plan previous to the pause are being automatically moved over to SAVE as payments become due in 2023. Those who were not on REPAYE and hope to “recertify” their loans should know that if they are making more money in 2023 than they were before the pandemic, this recertification could lock in a higher monthly payment that will not be reduced until the SAVE Plan kicks in, in mid-2024.
  • Oregonians can also:
    • Explore affordable repayment plans at studentaid.gov/loan-simulator.
    • Consider re-certifying income-driven repayment plans early if income has decreased or family size has increased.
    • Check if you qualify for a certain types of loan forgiveness – educators, medical professionals, nonprofit and government employees, people with disabilities, and persons on income-driven repayment plans and more may qualify.
    • Get defaulted loans back on track: U.S. Department of Education’s Fresh Start Program aims to get defaulted borrowers back on track. Defaulted borrowers can take advantage by calling their servicer today.
    • Obtain transcripts from Oregon Universities, even if debt is owed: The Oregon Legislature passed Senate Bill 424, which bans institutions of higher education from withholding transcripts from students for debt owed to the institution.