4 Dates Student Loan Borrowers Need to Know in 2024

The federal pause on student loan repayment ended last October, jolting many of the more than 45 million Americans who carry student loan debt.

Now that payments have resumed, it is especially important to stay on top of your student loans if you hope to get ahead financially. 

Here are five important dates borrowers should be aware of in 2024.

Shortly after President Biden’s proposed student loan forgiveness plan was shot down last summer, the administration announced it would continue to take steps to help borrowers.

Forbes estimates that the administration will release a final draft of a new loan-forgiveness plan sometime in May, with regulations possibly going into effect later in the year. 

In the meantime, the Public Service Loan Forgiveness program began a partial processing pause on May 1, which will likely run through July.

Additional benefits of the Biden administration’s Saving on a Valuable Education (SAVE) Plan will go into effect in July. Although the plan was announced in the summer of 2023, the benefits have rolled out gradually.

In summer 2024, undergraduate loan payments will be slashed by half — from 10% to 5% of income above 225% of the poverty line.

In addition, borrowers who took out $12,000 or less in loans might qualify for forgiveness in as little as 10 years.

To help borrowers avoid serious financial consequences, the government created an “on-ramp” period after the pause on student loan payments ended in 2023.

Through Sept. 30, 2024, the government will not report borrowers as delinquent due to missed, late, or partial payments. However, interest is still accruing during this period, and the grace period itself will end in September.

If you have missed payments since the payment pause ended, consider contacting your loan servicer to develop a repayment plan that better suits your financial situation.

After the U.S. Supreme Court struck down Biden’s student loan forgiveness plan, the Biden administration began developing a new program through a formal process called negotiated rulemaking ("neg reg"). 

The final public session of neg reg ended on December 12, and more details are emerging about potential eligibility and relief amounts under this new plan, expected in 2024. 

The new proposal aims to assist borrowers with higher balances due to accumulating interest and those unable to repay loans after about 25 years. 

Typically, draft rules would be expected by June or July, with final rules by November 1. However, due to the upcoming presidential elections, there might be an effort to expedite this timeline.

Student loan repayment can seem daunting, especially for those struggling to pay other bills or get out of debt in other areas of their lives.

If you are struggling to pay student loans, your student loan servicer should be able to discuss better repayment options and suggest any forgiveness for which you might be eligible.