FAME launches resources to help Maine borrowers get ready for repayment restart
Augusta – According to a recent survey conducted by U.S. News & World Report, only 30% of student loan borrowers know when their payments are set to resume, while almost half said they aren’t financially prepared to begin repaying their debt. In Maine, there are 187,100 student loan borrowers with $6.2 billion in student loan debt belonging to state residents. After a three-year pause of payments by the federal government, FAME has launched a Student Loan Repayment Restart online resource to help Mainers prepare for and navigate the repayment process, which starts in October. Federal student loan interest begins accruing September 1, 2023.
“It has been over three years and nine extensions since most borrowers were required to make a payment on their federal student loans,” said Martha Johnston, FAME Director of Education. “In addition, students who graduated during the pandemic have never had to establish the habit of repaying their loans. We hope that these new resources will provide meaningful support to help borrowers prepare and navigate repayment.”
The new online resource provides information to help borrowers plan for repayment, including key steps that borrowers can take to prepare. For example, borrowers should visit StudentAid.gov to verify their federal student loan servicer, as it may have changed. Once they have confirmed their servicer, they should update their online account and provide current contact information. It is also critical that borrowers pay attention to and respond to any emails or letters from their loan servicer. Most importantly, borrowers who can’t afford their student loan payment or can’t make their payment on time should contact their loan servicer to explore alternative repayment options and loan forgiveness programs, such as Income Driven Repayment and Public Service Loan Forgiveness.
The Finance Authority of Maine (FAME) is a quasi-independent state agency celebrating its 40th anniversary. FAME provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit www.famemaine.com.