Most borrowers are required to start repaying the loans within six months after graduation. If you’re unemployed or suffering other economic hardship, you can apply to have payments deferred for up to three years. But depending on the type of loan, interest may continue to accrue during that period, which means you’ll have an even bigger balance when you resume payments. Starting July 1, borrowers will have a new option: a repayment program that caps monthly payments based on income. It targets borrowers who would have a hard time paying basic living expenses if they had to make standard monthly payments on their loans, says Lauren Asher, acting president for the Project on Student Debt.
Office of Strategic Communication