The federal student loan repayment pause ended in September 2023, and collections resumed in May 2025. In 2026, some borrowers even faced wage garnishment, leaving many families struggling to meet their monthly obligations.
Explore Income‑Driven Repayment
Start by identifying your loan servicer. If you’re unsure, call the Federal Student Aid Information Center at 1‑800‑433‑3243 or log into the National Student Loan Data System using your FSA ID. Qualifying for an income‑driven repayment (IDR) plan can cap your monthly payment at 10% of discretionary income, and in certain cases the payment may be $0.
Consider Deferment or Forbearance
If you don’t meet IDR criteria, you may still request a deferment or forbearance. Deferment pauses interest accrual, providing a true breather, while forbearance allows you to pause payments but interest continues to accrue. Use any granted time to plan a budget, increase earnings, or reduce expenses, keeping in mind the limits on how long you can stay in each program.
Look Into Student Loan Forgiveness
Various forgiveness programs exist for eligible borrowers. Public‑service workers, such as teachers and healthcare professionals, may have pandemic‑related pause time count toward required service years. Some states also offer partial forgiveness for specific occupations. Research your eligibility thoroughly, as qualifying can dramatically reduce your overall debt.
Private Loans Require Different Strategies
Private student loans do not participate in federal IDR plans or forgiveness programs. If private debt is a burden, consider negotiating with creditors for lower balances or more favorable terms, though not all private loans qualify for such relief.
Build a Personal Budget
Creating a budget is essential. It isn’t a punishment; it’s a tool that lets you decide where each dollar goes. Numerous budgeting apps can simplify the process and help you track spending.
While another federal pause appears unlikely, taking these steps now can help you stay financially stable and avoid aggressive collection actions.
Original reporting: El Paso News (HLL/CB) — read the source article.
