‘On-ramp period’ for student loan borrowers who can’t pay starts in October

Published: Sep. 25, 2023 at 9:56 AM EDT
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(CNN) - For the first time in more than three years, student loan payments are due in October.

However, for the next 12 months, borrowers will be able to skip payments without facing the harsh financial consequences of defaulting on their loans.

The Biden administration is providing what it has called an “on-ramp period” until Sept. 30, 2024.

During that time, a borrower won’t be reported as being in default to the national credit rating agencies, which can damage a person’s credit score.

However, borrowers are not off the hook entirely. Interest will still accrue.

For more information, check out the U.S. Department of Education’s website.