"The end of the on-ramp period means the beginning of the potentially harsh consequences for student loan borrowers who are not able to make payments," said Persis Yu, emphasizing the risks many face.
"Normally, loans will default if you fall about nine months behind on making payments, but during this on-ramp period, missed payments would not move people towards defaulting," explained Abby Shaforth.
"...borrowers who are struggling to afford their monthly payments have fewer options...the SAVE plan on hold complicates their situation further," noted Yu, highlighting the challenges post-grace period.
"Around eight million of those borrowers had enrolled in the SAVE plan, the newest income-driven repayment plan that extended the eligibility for borrowers to have affordable monthly student loan payments," indicating the need for sustainable repayment options.
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