DES MOINES, Iowa — Federal student loan borrowers will have to begin repayments on their loans for the first time in over three years.
Back in 2020, the Trump administration paused payments on federal student loans. President Joe Biden extended the pause before the U.S. Supreme Court ruled to end it earlier this year.
"I was under the impression we would have a little more grace period, but I know that it was going to happen regardless so," said Jordan Wyer, a sophomore at Drake University. "I'm saving up now."
Interest on student loans began accruing in September, providing borrowing one month to prepare themselves to pay off their debt.
"It does make me a little nervous knowing that I have that behind me," Wyer said. "But I also know that if I'm smart, I can hopefully get through."
One of the ways borrowers can "get through" their repayments is through a repayment plan set up with your student loan service provider.
The Biden Administration announced a new type of repayment plan for lower-income individuals. The program is called the "Saving on a Valuable Education" or the SAVE repayment plan.
Monthly payments would estimate to 5% of your discretionary income for those apply and pay their loans back through this plan.
"Trying to help folks with lower incomes be able to make those payments, but then, not penalize folks that maybe can't make them if their income falls below a certain level," explained Mark Triplett, the CEO of Triplett-Westendorf Financial Group.
In the week leading up to Saturday, many individuals were worried of a looming federal government shutdown.
"It'll be a nuisance and maybe make some folks fearful," Triplett said. "Those that work for the federal government that are deemed non-essential, it could impact them."
Luckily, the threat of a government shutdown is over for now, assuming President Joe Biden signs the temporary funding plan passed by Congress.
However, even if the shutdown did go through, borrowers would still have to repay their student loans starting Oct. 1.