As student loan payments loom, borrowers weigh deferrals, ‘debt strikes’ and Deuteronomy

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Student borrowers are floating a range of ideas online for lightening their burdens when loan repayments resume on Oct. 1: Pay a little or pay nothing. But experts warn that most people risk serious consequences for not paying.

, according to the Education Data Initiative. Most student debt is federal, with only 8% of students borrowing from private issuers.viral video“And this is not a joking, play-play-like type of situation,” Mclaurin said. “Are we not paying — like collectively, as a whole — meaning if you put a payment down you are breaking, you’re crossing the line?”

, insulating borrowers from near-term consequences for nonpayment even while interest begins to accrue again starting Sept. 1. And under longstanding federal policies, borrowers with existing student debt can typically get their payments paused temporarily if they go back to school. In many cases, though, interest will continue to accrue.

There are ways to pay less through other avenues that don’t entail potential penalties, Farrington said. He estimates that half of student loan borrowers qualify for some type of forgiveness program, but many haven’t filed the paperwork to receive it.

 

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