Assemblymember Mia Bonta explains what you need to know
"Back in March 2020, each of us faced unprecedented circumstances, but most critical was the disruption of our education,” Assemblymember Mia Bonta wrote in a newsletter to constituents this past week.
“Among the policies implemented by the U.S Department of Education to ease this disruption was a pause on nearly all student loan payment and interest accruement. This allowed families to meet their financial obligations as the world came to a standstill,” she stated. “However, we find ourselves in new territory once more with the U.S. Department of Education’s COVID-19 relief ending. Student loans will resume interest accruement starting September 2023 and student loan repayments will be due starting October 2023.”
Assemblymember Bonta referred to a Forbes’ article about the Biden administration’s efforts to expand student loan forgiveness for eligible students, and noted that California’s 2023-24 budget includes major investments in TK-12, community college, and UC/CSU communities. This budget will expand Cal Grant to an additional 150,000 students starting 2024-25, she stated, and supports the University of California’s announcement that California residents who are part of a federally recognized Native American tribe will receive tuition-free education at any UC campus.
Key tips for student loan repayments:
- Your first payment will be due October 2023.
- Your monthly payment amount depends on your repayment plan.
- Don’t wait until your first bill to start preparing how to budget.
- If you work in a federal, state, tribal, local government, or non-profit organization, you may qualify for student loan debt relief of up to $20,000.
- You may qualify for lower monthly payments based on your income and family size with the Income-Driven Repayment Plan.
If you have financial difficulties and are unable to restart student loan repayments, you may apply for temporary relief for deferment or forbearance with your loan provider.
Contact Assemblymember Bonta via email or by phone at 510-286-1670.