Many Americans are facing challenges in keeping up with monthly student loan payments after losing their job, with job cuts on the rise. Currently, borrowers who are laid off are unable to access income-driven repayment (IDR) plans, such as the new SAVE plan, which allows for lower payments or even a $0 bill while unemployed. A recent U.S. appeals court decision has blocked access to IDR plans, causing disruptions for borrowers trying to recertify for lower payments. Unemployment deferment, economic hardship deferment, and other lesser-known deferment options are available for borrowers who have lost their job and are struggling to make payments. Borrowers should be aware that interest may accrue on their debt during deferment, resulting in a larger balance when payments resume. Private student loan borrowers may have fewer options for relief, but experts recommend contacting their lender to discuss their situation. The availability of IDR plan applications and recertification processes remains uncertain, but borrowers are encouraged to explore alternative options for managing their student loan debt during unemployment.
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