As many of you are no doubt painfully aware, Student Loan repayments restarted on October 1st, 2023. For many of us, that’s meant some tough lifestyle choices - or, more likely, rising credit card debts as we try to adjust to that extra cash going out the door. 

The statistics are stark: According to CNBC, when student loan payments restarted, a staggering 56% of borrowers were faced with an agonizing choice – to allocate funds to loan repayments or to cover necessities like groceries and rent. Although the impact skews towards those making $50,000 or less, 45% of borrowers with household incomes of $100,000 are struggling to make their debt payments and afford necessities. 

If you’re in this camp, Budge is here to help. Our mission has always been to empower individuals on their journey to financial stability, and in the face of this impending challenge, our commitment remains steadfast. We provide tools, content, and coaching focused on this exact issue. Here are some of the key things you need to know. 

‍The Save Plan: A Lifeline for a Smoother Journey

For those with federal student loans, the Save Plan is a beacon of hope. Tailored for borrowers seeking a lower monthly payment than the standard 10-year repayment plan, this plan offers a lifeline. If you have undergraduate loans, you're in luck. The Save Plan offers major improvements over existing income-based repayment plans.

• Lower Payments: The Save Plan redefines affordability by exempting more income from payment calculations and reducing the income percentage for undergraduate borrowers from 10% to just 5%.
• Balance Protection: Say goodbye to escalating loan balances. With the Save Plan, as long as you meet your minimum monthly payment, your balance will remain untouched by interest.
• Enrollment: If you're already in the REPAYE program, you'll be automatically enrolled in the Save Plan once it's operational. Not on REPAYE? Enroll or switch now via StudentAid.gov and take control of your financial journey.‍

Fresh Start: Breathing New Life into Your Financial Story

If default is a word that has haunted your financial narrative, let the Fresh Start program be your second chance. Designed for federal student loan borrowers in default, this program offers a chance to regain control.

• Credit Revival: The Fresh Start program brings your loans back to "current" status, erasing the stain of "in collections" from your credit reports and potentially boosting your credit score.
• Halt to Collections: Put an end to collection efforts – no more intrusive calls, wage garnishments, or tax refund seizures.
• Multiple Opportunities: Even if you've tried and failed before, the Fresh Start program doesn't close doors. It's a chance to rekindle your financial journey and access federal student aid for further education.

Take action today, via https://myeddebt.ed.gov/.

​One-Time Account Adjustment: Crafting a Clearer Path to Forgiveness

The financial landscape can be confusing, but the government's One-Time Account Adjustment is a clarion call for transparency. Addressing the complexities of income-based repayment plans paves the way for qualified borrowers to see periods that didn't count towards forgiveness finally acknowledged.

• Inclusive Recognition: Payments from any repayment plan, forbearance periods, economic hardships, and more – this adjustment encompasses them all.
• Your Path to Clarity: Understand your loans. Determine eligibility. Your journey to financial liberation starts with knowing your options.

To understand the types of loans you have reach out to your student loan servicer or log into your StudentAid.gov account. If you have Direct or FFEL Program loans held by the Department of Education and have any payments that qualify, your account will automatically be updated later this year. If you have FFEL, Perkins, or Health Education Assistance Loan (HEAL) Program loans, you’ll need to consolidate your loans before the end of 2023 to benefit from the one-time adjustment.

​And if you are looking for advice on any of these topics you can always log in to your Budge app for free to view our content, use our easy debt management tools, or schedule time to talk with a financial coach for free.