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Student Loan Repayments Resume: What Borrowers Need to Know in 2024

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  Published in Business and Finance on Monday, January 5th 2026 at 8:35 GMT by Investopedia

Navigating Student Loan Repayment in 2024: What Borrowers Need to Know According to a Servicer

The long wait is over – student loan repayments have resumed after a three-year pause. This return to normalcy has left many borrowers feeling overwhelmed, unsure of their options and facing potential financial strain. To help clarify the landscape, Investopedia recently interviewed Scott Buchanan, CEO of AdvantaServ, a major student loan servicer, to provide insights into repayment plans, forgiveness programs, and what borrowers should prioritize as they navigate this new year. This article summarizes those key takeaways, offering a comprehensive guide for current and potential student loan holders.

The Landscape Post-Pause: A Complex Picture

Buchanan emphasizes that the resumption of payments is more complicated than simply picking up where things left off in 2020. Borrowers are re-entering a system with significant changes, including new repayment plans introduced through the Biden administration's SAVE (Saving on a Valuable Education) plan and ongoing legal challenges impacting broader forgiveness initiatives. The pause itself also created unique circumstances – interest accrued during that period, which is now being factored into payments.

Understanding Your Repayment Options: Beyond Standard & Graduated

The traditional repayment plans—standard (10-year term) and graduated (payments increasing over time)—remain available. However, Buchanan strongly encourages borrowers to explore alternative options, particularly the Income-Driven Repayment (IDR) plans. These plans base monthly payments on income and family size, potentially leading to significantly lower payments than standard plans.

The SAVE plan is arguably the most significant development in recent years. It offers several advantages over previous IDR plans:

• Lower Payments: The SAVE plan caps payments at 5% of discretionary income (down from 10% for other IDR plans). Discretionary income is defined as income exceeding 225% of the poverty guideline.
• Increased Protection Against Unpaid Interest: For borrowers with balances below a certain threshold, any interest accruing above the capped payment will be forgiven – preventing loan balances from growing even while making payments. This is a crucial benefit for many. (See Investopedia's explanation of how SAVE works [ https://www.investopedia.com/student-loan-save-plan-5309176 ]).
• Faster Forgiveness for Some: Borrowers with original principal balances under $12,000 may be eligible for forgiveness after just 10 years of payments under SAVE.

Beyond SAVE, other IDR plans include Income-Based Repayment (IBR), Pay As You Earn (PAYE) and Income Contingent Repayment (ICR). While still viable options, the SAVE plan is generally considered more favorable due to its lower payment cap and interest protection.

Public Service Loan Forgiveness (PSLF): A Continued Path to Cancellation

For those working in qualifying public service jobs (government employees, teachers, nurses, etc.), Public Service Loan Forgiveness (PSLF) remains a vital avenue for loan cancellation after 120 qualifying payments. The PSLF program underwent significant reforms in recent years, making it easier for borrowers to qualify. The temporary waiver allowing previously ineligible payments to count toward forgiveness has ended, but borrowers should still carefully review their eligibility and submit employment certification forms regularly (every year). (Explore the PSLF details here: [ https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service ]).

Addressing Potential Hardships & Deferment/Forbearance

Buchanan acknowledges that some borrowers may struggle with repayment due to financial hardship. While the pause is over, options like deferment (temporary postponement of payments) and forbearance (temporary reduction or suspension of payments, but interest typically continues to accrue) are still available. However, he cautions against relying on these as long-term solutions, as they can significantly increase the total amount owed due to accumulating interest.

The Ongoing Legal Challenges & Their Impact

The Investopedia article highlights the uncertainty surrounding student loan forgiveness due to ongoing legal challenges to President Biden's broader debt cancellation plan. While that specific plan is currently blocked, it underscores the volatile nature of the situation and the potential for future policy changes. Borrowers should stay informed about these developments but not base their repayment strategies solely on unconfirmed promises.

Key Recommendations from AdvantaServ:

• Log into Your Account Regularly: This allows borrowers to view balances, payment history, and available options.
• Recertify Income Annually (for IDR Plans): This is crucial for maintaining eligibility for income-driven repayment plans and ensuring accurate payment calculations.
• Explore the SAVE Plan: Most borrowers will likely benefit from this plan's lower payments and interest protection features.
• Contact Your Servicer with Questions: Servicers are a valuable resource for understanding your options and navigating the complexities of student loan repayment. Don’t hesitate to reach out if you’re unsure about anything.
• Beware of Scams: Be cautious of unsolicited emails or phone calls promising immediate debt relief – these are often scams designed to steal personal information.

In conclusion, the return of student loan repayments requires borrowers to be proactive and informed. By understanding their repayment options, exploring programs like SAVE, and staying abreast of policy changes, individuals can navigate this challenging period with greater confidence and minimize potential financial strain. The advice from AdvantaServ emphasizes a responsible and informed approach – prioritizing accurate information and direct communication with your loan servicer as the foundation for a successful repayment journey.