Congratulations! Making the decision to pursue higher education is an important step that can open doors and provide opportunities, but as you graduate you must start preparing for repayment of the loans used to pay for your education. Every 28 seconds someone defaults on their student loans in California. The average student debt balance is over $35,000, making it difficult for borrowers to buy homes, invest, and start businesses. After three years of being on pause, student loan payments have started up again, so please use these resources to make sure you are prepared to start making payments and for your loans to start collecting interest again. (updated Nov. 2023)
Income-Driven Plans
An income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size. The Saving on Valuable Education (SAVE) plan and the Revised Pay As You Earn (REPAYE) plan are two of the federal government’s newest income-driven repayment plans and could help make sure your payments are manageable for your income. Click here to visit the U.S. Department of Education’s website.