New Student Loan Rules and Your Homebuying Journey
Big Student Loan Changes Coming September 1st
The post COVID rules that paused your payments on certain student loans is coming to an end.
Interest on your public student loan will start accruing again on September 1, 2023. According to the Education Department student loan payments will start back up on October 1, 2023.
Make sure that you understand the amount due for your monthly student loan payment by contacting your loan servicer.
Start by reviewing your monthly budget and make adjustments so you are prepared financially to make the payment.
Consider whether there are other lower payment options that may be available for you - like plans based on your income.
If you are considering pre-qualifying for a mortgage remember that the student loan payment is considered as a monthly payment obligation. You must make the payment on time.
What happens if you have a public student loan and have a problem making your payment October 1st?
There is a 12- month "grace period" from October 1, 2023, to September 30, 2024.
During this time period a payment the loan servicer you are set up to make payments cannot report a late payment to the credit bureaus, place you in default, or refer your account to a collection bureau.
However, if you are trying to qualify for a home loan an underwriter could ask to see a history of your student loan payment after October 1, 2023, to make sure you are paying on time.